More seniors use reverse mortgages to raise cash
By Mark Koba, cnbc.com
Finding themselves financially strapped, more seniors at an earlier age are trying to get reverse mortgages on their homes in order to survive, according to a new report.
The study says the percentage of people aged 62 to 64 applying for reverse mortgages has increased 15 percent since 1999.
The reason for the dramatic upswing among “younger” seniors is simple, the report concludes: They need the money.
“The average age for taking out reverse mortgages has been around 71,” explains Sandy Timmerman, director of the MetLife Market Institute who conducted the survey with the National Council on Aging.
“But with job losses, higher debt and living costs, more and more of the ‘younger’ seniors are looking at reverse mortgages as a way to pay their bills and keep their homes,” Timmerman adds. “It shows the devastation some seniors have gone through since the financial downturn.”
Reverse mortgages — which allow homeowners to borrow against the value of their homes — have been around since the early 1960s, but have grown in popularity. TV commercials with celebrities such as Henry Winkler, Robert Wagner and Fred Thompson promoting reverse mortgages, are rampant during weekends and late night viewing hours.
But whether it’s the ads, the financial necessity, or both — reverse mortgages have become attractive to more seniors. In 2010 alone, more than 80,000 Americans over 62 years old finalized a reverse mortgage. That’s up from 25,000 in 1995.
Reverse mortgages from iReverse Home Loans have helped many seniors live stress free in their golden years by using the equity in their homes! We have access to a full range of mortgage sources and all of our lending specialists are dedicated to finding the right loan-with the best rates, terms and costs-to meet your unique needs. If you would like information about reverse mortgages in The Villages,Florida contact our team of specialists at 800-486-8786 ext 813.