Divorce has declined in the US for everyone except couples over the age of 50, whose rate has doubled since 1990. Divorcing later in life is becoming increasingly common, with the phenomenon known as “gray divorce” identified as a significant 21st-century trend. While the overall divorce rate is declining, it’s rising among older generations. A reverse mortgage is specifically designed for senior homeowners, 62 years and older, who want to convert part of their home’s equity into loan proceeds.
The Rising Financial Needs of Senior Homeowners
With the increasing financial requirements of senior homeowners and limited or fixed incomes in divorce situations, a reverse mortgage is becoming a popular option to supplement income.
How Can a Reverse Mortgage Help Your Divorcing Clients?
A reverse mortgage can assist your divorcing clients in several ways, including:
Flexible Payout Options:
- Line of Credit: Allows borrowers to draw on loan proceeds as needed.
- Fixed Monthly Payments: Creates a steady income stream for a set term.
- Lump Sum: Provides a large amount of money at once.
- Combination: May offer an equity buyout while also creating an income stream.
A reverse mortgage can be used for various purposes, such as:
- Paying off existing mortgages with loan proceeds.
- Covering healthcare costs.
- Paying taxes and insurance.
- Making home modifications.
- Building a reserve fund.
How a Certified Divorce Lending Professional (CDLP®) Can Help During the Divorce Process
A CDLP® brings immense value to the divorce team during the settlement process due to their comprehensive understanding of the entire divorce process. Their expertise in the intersection of family law, tax law, real estate, and mortgage financing sets them apart from other mortgage professionals.
A successful divorce settlement involves piecing together various aspects to ensure both spouses emerge whole. Each member of the professional divorce team should contribute value and perspective that enhances the overall outcome and success.
Working with a Certified Divorce Lending Professional
Always work with a Certified Divorce Lending Professional (CDLP®) when dealing with divorce and real estate or mortgage financing. Their specialized perspective and expertise can significantly impact the success of your divorce settlement.
This is for informational purposes only and not for the purpose of providing legal or tax advice. You should contact an attorney or tax professional to obtain legal and tax advice. Interest rates and fees are estimates provided for informational purposes only and are subject to market changes. This is not a commitment to lend. Rates change daily - call for current quotations. The information contained in this newsletter has been prepared by, or purchased from, an independent third party and is distributed for consumer education purposes.
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