Senior Reverse Mortgages - Why Are They So Popular

In the early years the popularity improved modestly

, because seniors are cautious people, who are not the first ones to try something new. But when the first borrowers took the senior reverse mortgages and the seniors started to hear experiences, the push radio advertising started to work.

Another thing has also happened, the attitudes have changed. Today it is allowed that the seniors will live actively and have many interesting hobbies. Many of them want to live in their old homes and sometimes it can happen only by taking the senior reverse mortgages.

1. The Tax Avoidance Can Be One Reason.

The reverse mortgage payments are tax free income, because the senior has paid the taxes once, when he paid the mortgage loan. This can be one of the reasons for the popularity. It is always nice to avoid taxes.

2. It Can Be The Only Source Of Extra Money.

This senior group is called cash poor but equity rich people, which means, that they cannot take more loan and that their home equity is their only source of extra money. If a senior from this group suddenly has to pay more for the medicines, for instance, the reverse loan can honestly help him.

3. The Friends Have The Loan.

If a senior has a friend, who has taken the reverse loan and recommends it warmly, the temptation to sign a deal can be big. If this friend belongs to the inner group of friends, the preassure can tricker the decision.

4. The Marketing Is Stronger.

When the potential target group for these products have grown, the lenders have started to advertise more and to use emotional mediums and ads, like the TV advertising. This will widen the market and to make the benefits known also among those, who are children or other relatives of the senior.

5. The Benefits Just Fulfil The Needs.

Generally the products, which fulfil, what they promise and offer better benefits, than other alternatives, will succeed in the market. The seniors are very demanding consumer group and accept only products, which honestly can meet the promises. The simple reason for the success can be, that the reverse mortgages have just fulfilled the senior needs.

by: Juhani Tontti

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