Seniors ditch downsizing
A 2018 survey by the AARP found that more than two-thirds of Americans aged 50 years or older have a strong desire to remain in their current home as long as possible. And new data from LendingTree shows that that desire is manifesting into reality. Last year, fewer Baby Boomers moved than ever before.
But as seniors age, data shows they are spending increasing amount of money on home rennovations to accommodate their physical limitations. As a result, more of America’s seniors are turning to powerful financial programs like reverse mortgages to supplement their monthly income and age in place.
Using home equity, reverse mortgages allow those 62 or older to completely eliminate their monthly mortgage payment and instead receive much needed cash. Borrowers can choose to take these proceeds in the form of a lump sum, monthly payout or even a line of credit.
Meanwhile, conventional mortgage rates remain at all-time lows with conforming no-point 30-year fixed mortgage rates averaging 3.25 percent and 15-year rates are near 2.875 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.