Reverse Mortgage – Increased Security
~ By Jim Doyle ~
A reverse mortgage can be a very effective tool for baby boomers to maintain a secure position during retirement. More and more, financial advisors are seeing the benefit of a reverse mortgage line of credit that will grow annually, and serve as a safety net for borrowers. No interest is paid when the line of credit is not drawn upon, and the fact that the ready funds are available for times of need is appealing.
An estimated 87% of baby boomers will own their home during retirement with 68% continuing to carry the burden of mortgage payments. Even more sobering is the fact that recent research shows that foreclosure rates increase by 920% for individuals between the ages of 65-74. Reduced income during non-working years, and high debt obligations have created a perfect storm for today’s retiring baby boomer. This staggering increase in foreclosures points to the need for greater use of a reverse mortgage to prevent such heartbreaking situations.
The Greatest Generation did not face such uncertainty in retirement because they had largely paid off their mortgages before retirement. However, even those baby boomers who are mortgage-free are finding that obtaining a reverse mortgage will allow them greater security and flexibility as they age in place. Funding longevity with a certainty not always afforded by a 401(K) or other investments is the goal.
Children of boomers are in favor of mom and dad living more comfortably without the worry of a mortgage, and with the ability to pay for certain services that make life easier such as home healthcare or even just help with laundry, grocery shopping or yardwork.
Call your Reverse Mortgage Specialist to inquire about the benefits for your specific situation.
Jim Doyle is the VP of Lending and Reverse Mortgage Specialist at Silver Leaf Mortgage in Centennial, CO. Direct: 303-875- 5994, JimDoyle@SilverLeafMortgages.com | NMLS# 1394377