American seniors do and it seems to me that this figure keeps growing each month. It wasn’t too long ago when it was at $ 5.5 trillion dollars and I thought, that was a lot of money to have in one’s home.
Reverse loans have been around for a number of years and as we head into the void of a lack of retirement funds that most people simply don’t have enough of…..there is a looming question as to how all of their needs will be managed as they age.
The Street recently published an article about this massive amount of equity that seniors have available to them to supplement their retirement, but many are still afraid of the HECM FHA loan program and do not see it as an option to extend their retirement savings.
Here is the first part of the article.
The Street: Education is Key When Discussing Reverse Mortgages
September 5th, 2016 | by Alana Stramowski Published in News, Reverse Mortgage
With the amount of equity floating around in the U.S., reverse mortgages could be a good a good financial decision in the right circumstance, explains a recent article on The Street.
There is $12.5 trillion in home equity in America and about $14 trillion in retirement assets, according to the article. Reverse mortgages could be used by homeowners 62 and older to help supplement Social Security and other existing income sources like medical expenses, long vacations or even purchase a new home.
A perk about the product that the public was often confused about in the past is that homeowners will never relinquish title to their homes. “The reverse mortgage enables seniors with insufficient income to tap their home equity without selling their domicile,” the article says. “Moreover, the income can make it possible for a retiree to deal taking Social Security payments in favor of larger payments down the road.”
I will share the remainder of this article in my next Post.