An increase in home values helped push housing wealth among homeowners 62 and older to a new all-time high. According to the National Reverse Mortgage Lenders Association, senior housing wealth grew by 0.5 percent or $32 billion in the second quarter to $7.17 trillion.
“Many retired and soon-to-be-retired Americans lack the financial assets for a comfortable retirement,” said NRMLA’s Executive Vice President Steve Irwin. “Yet the most commonly held and valuable asset for most of them is their home.”
Programs like a reverse mortgage allow for senior homeowners to utilize their home’s equity to eliminate monthly mortgage payments and receive supplemental retirement income in the form of a lump sum, monthly payout or a line of credit.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 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.