The Census Bureau reveals that the average life expectancy in the U.S. has steadily climbed to 78.8 years as of 2013. As a result, the traditional methods of building wealth to last a lifetime have proven inadequate as retirements are now lasting longer than ever. Adding to the burden is the increased cost association with living longer, particularly unexpected health issues and medical costs.
While most Baby Boomers who have finanicial plans in place take into account expected expenses such as housing, food and insurnace, paying for unexpected expenses has needed creative measures. The National Reverse Mortgage Association says that more retirees than ever are turning to a reverse mortgage to fund their longevity and prepare for unexpected life events.
Reverse mortgages benefit the borrower by eliminating monthly mortgage payments. Further, this powerful financial tool can provide homeowners 62 or older with monthly payouts, a lump sum or a line of credit – all of which can be used as supplemental income.
Meanwhile, conventional conforming no-point 30-year fixed mortgage rates average 3.625 percent while the 15-year rate is near 3 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.