Traveling, more time with family and leaving a legacy is the retirement many elderly people dream of. However, research from the National Retirement Risk Index estimates that more than half of retirees fall short of even maintaining their pre-retirement lifestyle.
As more and more baby boomers are retiring, new studies are proving that options are available to cover shortfalls during the Golden Years. Experts at The American College, Boston College, Columbia University and MIT all agree that utilizing home equity as an integral part of retirement planning can create the post-work lifestyle seniors envision.
Among the leading ways seniors are incorporating home equity into their retirement income plan is a reverse mortgage which is a loan that senior homeowners age 62 or older can use to fund their longevity. The program allows the borrower to eliminate monthly mortgage payments while still maintaining homeownership. Reverse mortgages provide the option of reciving loan proceeds in the form a lump sum, monthly payment or line of credit.
Today, 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.