Categorized | Finance and Mortgage

Reverse Mortgages Becoming More Common Among Seniors

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With the economy having wrecked their investment portfolios in recent years, many senior citizens are now opting for reverse mortgages on their homes in order to raise enough money for survival.

 

Reverse mortgages have increased fifteen percent since 1999. That number is expected to increase even further in the next year or two. The growing rate has been attributed to such factors as job loss, difficulty in finding a new job, and an increased cost of living. Increased prices and less income have also caused a jump in overall household debt.

 

As a result, more senior citizens are left with no other option but to get a reverse mortgage on their home to pay their bills.

 

Although reverse mortgages have been around for nearly half of a century, they have only recently become a common phenomenon. Nearly one hundred thousand senior citizens took out a reverse mortgage in the past year.

 

Those signing up for reverse mortgages are getting younger by the day. The average of a person that files for a reverse mortgage is 71, though that number is expected to decline over the next few years.

 

While reverse mortgages used to be frowned upon in the past, they have become more acceptable as they grow more common. However, financial analysts warn that they are not the best choice for everyone. In fact, there have been many reports of seniors getting scammed when filing for a reverse mortgage.

 

Reverse mortgages are available to those that are sixty-two years or older, and provide a lump sum to an individual in exchange for the equity of the house.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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