They all vary depending on the lending institution and the programs they offer. Reverse mortgages were introduced in the late 1970s but they have been slow to take hold across the nation, including Delaware. Last year, Wilmington Savings Fund Society stopped offering reverse mortgages because the volume was so low it wasn't worth the time and expense, bank officials said. Many seniors think they'll lose ownership of their home if they take out a reverse mortgage. But they keep their home and they are required to continue its upkeep.
Some senior citizens shy away from reverse mortgages because of their heirs.
If the home is the borrower's main asset, she said, they are technically depleting their estate before they go. But, she stressed, other assets cannot be touched by the lender. Since 1989, there have been only 86 reverse mortgages in Delaware and 24,500 nationwide, according to Fannie Mae. But they are beginning to grow in popularity, said Ruth Favin, reverse mortgage counselor with GMAC Mortgage Corp. of Pennsylvania, which does many of Delaware's reverse mortgages. So far this year, nearly 30 reverse mortgages have been closed in Delaware and 5,100 nationwide, she said.