ARAMCO Report - The Mother of ALL Mortgage Blogs!

Debt levels burdening retirees

Posted by Mehran Aram on Thu, Apr 4, 2019 @ 16:04 PM

Unlike the generations that retired before them, the tens of thousands of Baby Boomers who are reaching retirement every day, are doing so with more debt. In fact, seniors aged 75 and older are four times more likely to carry debt into their retirement than someone the same age who retired in 1989. The value of that debt has also climbed a whopping 270 percent since that time.

Entering retirement with high levels of debt can place a heavy burden on seniors who find that social security and personal savings are not enough.

A certified reverse mortgage professional can assist those planning for retirement by evaluating the benefits of home equity programs like a reverse mortgage. Reverse mortgages allow those 62 or older to eliminate monthly mortgage payments while providing a source of income through a monthly check, a line of credit or a lump sum payout.

Meanwhile, conventional conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 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.

Topics: Reverse Mortgage, HECM, Certified Reverse Mortgage Professional, Retirement, debt, Seniors, Mortgage rates, Baby Boomers, Social Security, Personal Savings, CRMP

Baby Boomers express desire to age-in-place

Posted by Mehran Aram on Wed, Jan 30, 2019 @ 05:01 AM

It used to be that empty nesters were expected to downsize but according to a new survey, America’s seniors are expressing a strong desire to stay in their family home. The Housing Confidence Index, released by Chase and Pulsenomics, found that 52 percent of Baby Boomers intend to never move out of their current home.

Rather than relocating, 88 percent of respondents say they plan to make improvements to their current home. Nearly 66 percent of those polled said they think their home values will continue to rise, providing incentive for homeowners to age in place and utilize their home as a source of income.

Powerful financial tools like reverse mortgages allow exactly that. In addition to eliminating monthly mortgage payments, reverse mortgages can provide supplemental income in the form of a lump sum, monthly payout or a line of credit. This can provide those 62 or older with a pathway to stability and security in retirement.

Today, conventional conforming no-point 30-year fixed mortgage rates are averaging 4.375 percent, 15-year rates are near 3.875 percent and the 5-year ARM is averaging 4.375 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.

Topics: senior citizen, Seniors, Housing Market, Housing, downsizing, Baby Boomers, boomers