Reverse Mortgages A Trend for the Future?

The number of reverse mortgages endorsed by the FHA during 2004 has so far doubled the 2003 production of over 18,000. Reverse mortgages account for over 3% of FHA's single family 2004 production. The Home Equity Conversion Mortgage for homeowners over the age of 62 began in 1987, but since 2000, has grown dramatically from about 6600 in 2000 to over 37,000 in 2004. Not surprisingly, California has the greatest number of reverse mortgages under this plan. Mortgage lenders have become increasingly familiar with this program, and more homeowners are seeing it as a financial planning tool where a homeowner over the age of 62 may borrow against the equity in their home and not repay it until they move out. Here is more on reverse mortgages.