Living on a fixed retirement income can severely limit the quality of life for seniors. The U.S. Census Bureau has estimated that nearly 1 in 7 seniors are living primarily on social security alone - calculated to be equivalent to only 40 percent of pre-retirement income. Fortunately, relief from this financial burden can be found in a reverse mortgage, designed specifically for those 62 years or older.
Qualified borrowers may reap the benefits of eliminating monthly mortgage payments and using the equity in their home to gain much needed cash during retirement. Current trends indicate that an increase in the popularity of reverse mortgages will be seen as the number of retirees increases and the benefits of this powerful financial tool becomes more well-known.
With enough equity, a reverse mortgage will also bestow the borrower with either a lump sum, monthly payments, or a line of credit, which is great news for individuals living on a fixed income.
Conventional conforming no point 30-year fixed rates are averaging 3.625 percent and 15-year rates are 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.