Baby Boomers are reaching the age of retirement at a rate of 10,000 per day and as they do so the woes of not having sufficient savings is becoming a reality for millions. According to recent survey data from the AARP, less than half of American in some states who are approaching retirement age are participating in a retirement savings plan at work.
While the idea of finding a way to fund a post-working life may be daunting, programs like reverse mortgages can function as a powerful financial tool for seniors to fund their longevity. The U.S. Census Bureau reports that for the average American, 75 percent of net worth can be found in their home.
Reverse mortgages allow those 62 or older to use the equity in their home to eliminate monthly mortgage payments and receive additional cash in the form of a lump sum, line of credit or monthly payout.
Today, conventional conforming no-point 30-year fixed rates are averaging 3.50 percent while the 15-year rate is near 2.75 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.