Retirement Income..Bank OF America Rolls Out Reverse Mortgages
Bank of America said it will soon launch nationwide a reverse-mortgage product -its offered to customers in Arizona since November. The product, called Senior Equity Maximizer, offers loans on up to $10 million of home equity, said Colin McCormick, reverse-mortgage product executive at Bank of America.
Bank of America's product allows you to set aside a portion of your home's equity to be preserved for your heirs, and the fees charged are a lower percentage of the home's value than those charged on traditional reverse-mortgage loans. But the interest rate on the bank's new product is generally higher, McCormick said.
Borrowers have taken out about 71,500 new FHA-based reverse mortgages so far this fiscal year (which began Oct. 1), a 49% jump from about 48,000 loans in the same period a year earlier. From 1990 through to the present, about 310,000 such loans have been taken out, according to the NRMLA.
Courtesy of MarketWatch.com
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