Banks are expecting an influx of new reverse mortgage loans starting in September and October when deferral programs start to end. Seniors who have businesses still have take quite a hit because of the Corona virus and the fall out of lock downs and social distancing. Seniors who also rely on the stock market to supplement their income may need to re-evaluate their positions and take out a reverse mortgage loan. Seniors need cash flow to live on and many people are realizing the values in their own homes.
- When Big Banks begin tapering back on their deferral programs, reverse mortgage activity is expected to accelerate.
- People in need of cash flow due to job losses and general uncertainty will likely be the ones to take on reverse mortgages.
- The covid-19 pandemic has been an example of why it’s good to own your own home, and businesses will continue to provide critical home-delivery services.
“Seniors who have previously bet on the stock market, and are now wrestling with the consequences of the coronavirus-induced crash, will likely borrow using their homes, as well.”