A new report by the Employee Benefit Research Institute has found that older Americans are taking on debt at a greater rate than any other age group. According to the study, released last month, in 1992, 53.8 percent of families with heads aged 55 or older had at least some form of debt – by 2016 that number had climbed to 68 percent.
In particular, housing debt payments are 1 to 3 times larger than any other debt seniors carry. This is part of the reason why the number of senior households with debt payments in excess of 40 percent of their income increased by more than 23 percent between 2007 and 2016.
Fortunately, opportunities like a reverse mortgage allow those 62 or older to relieve themselves from the burden of many of these debts, including a monthly mortgage payment. By utilizing the equity in their home, seniors can receive supplemental income in various forms, including a monthly payout, a line of credit or even a large lump sum.
Meanwhile, conventional conforming no-point 30-year fixed mortgage rates averaging 4.375 percent, 15-year rates near 3.875 percent and the 5-year ARM averaging 4 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.