Among the greatest challenges facing America's seniors is being on the verge of retirement with little or no savings. However, as new data suggested, the lack of cushion in the bank may not be the only problem. More homeowners are reaching retirement age with higher levels of mortgage debt compared to the last two decades. According to the Federal Reserve's Survey of Consumer Finances, the number of American's in their seventies with mortgage debt increased from 10 percent in 1992 to 30 percent in 2013.
As a result, more seniors are turning to reverse mortgages to minimize out-of-pocket expenses in retirement. Reverse mortgage programs can allow those 62 or older to tap the equity in their home to pay off their exiting mortgage debt. Additionally, supplemental income can be received in the form a lump sum, monthly payment or a line of credit.
Meanwhile, conventional conforming no-point 30-year fixed rates are averaging 4.125 percent while the 15-year rates are near 3.375 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.