A recent study by the Center for Retirement Research at Boston College determined that 60% of households in the U.S. are “at risk” of being financially unprepared for retirement.
Even though the real estate market is down, home equity is still a major asset that is available to seniors to fund their retirement. According to CRR, using a reverse mortgage can reduce the number of “at risk” households by 10%.
The average age of those applying for reverse mortgages has recently fallen to just over the minimum qualifying age of 62. This seems to indicate that Baby Boomers are more accepting of using a reverse mortgage to help fund their retirement.
CRR stated that preserving home equity for their heirs may be a luxury that future retirees won’t be able to afford.
With the Social Security system floundering and most 401K’s and IRA’s down in value, most Boomers will need to find alternative ways to fund retirement if they are going to maintain their standard of living in their Golden Years. As a result, reverse mortgages will likely become as common as traditional home equity loans in the near future.
Mark Schmidt has been a reverse mortgage specialist since 2004. In that time, he has guided hundreds of seniors through the reverse mortgage process. He is a veteran in the industry at a time when many others are “jumping on the bandwagon” of reverse mortgages.
A graduate of the University of Illinois, Mark also has an MBA from Loyola University and twelve years as a financial analyst with Merrill Lynch and Bank of America. To understand the needs of his clientele better, he was designated a Certified Senior Advisor in 2007 by completing additional studies of the social, physical, and financial aspects of aging.
Mark is the reverse mortgage expert for www.caregiverlist.com and is the author of “Reverse Mortgages: Facts and FAQs” which was in Amazon.com’s top five list for reverse mortgage books before selling out.
Mark can be reached at 773-504-9633 or you can email him directly by clicking here.