10,000 Americans a day are turning 65 and most of these Americans, aged 62 to 69, are looking for ways to tap their home's equity because:
45% of baby boomers surveyed have absolutely nothing saved for retirement. So, they need a solution to an immediate financial shortfall.1.
Their home value increased, and 67% of people surveyed want to immediately lower household debt. 2.
Boomers got hit hard in the 2008 financial downturn. 2.
Health issues are forcing Boomers to retire earlier 2. and a Reverse Mortgage can delay tapping into Social Security.
A 65-year-old couple will need an estimated $260,000 to pay for unreimbursed medical expenses through retirement - and that doesn't include long-term care, according to Fidelity Investments.
More people are waiting until age 65 or later to retire 2. because of a savings shortfall.
The fastest growing group of divorcees are 50+. 3.
They want to move closer to their kids or buy a different home.
1. https://www.fool.com/retirement/general/2016/05/15/baby-boomers-retirement-woes-summed-up-in-5-statis.aspx
2. TheMetLife Study of How Aging Homeowners Use Reverse Mortgages, March 2012
3. http://reversemortgagedaily.com/2017/05/07/with-gray-divorce-on-the-rise-reverse-mortgage-lenders-see-opportunity/?utm_source=Reverse+Mortgage+Daily&utm_campaign=584d312037-EMAIL_CAMPAIGN_2017_05_08&utm_medium=email&utm_term=0_48b4357284-584d31203
The regulations around Reverse Mortgages (also called HECM) have changed significantly to protect the consumer. Plus, HECMs are insured by the Federal Housing Administration (FHA).
We shouldn't consider a reverse mortgage to be a last resort; it is an asset in your financial portfolio. Kiplingers advised mature homeowners, "It would be foolish not to consider one of the largest stores of wealth, their home, as part of their retirement income plan."
At Catalyst Lending we respect how hard you have worked for your home's equity and the impact this loan will have on your future, so we walk you through the process and ensure every detail is correct.