While the “baby boomer” generation inches towards retirement, the economy in many areas is still rather dismal. Many took major losses in the 2008 economic meltdown, losing their hopes for a prosperous retirement. In situations such as this, reverse mortgage is becoming an important piece of retirement planning. Seniors, 62 years and older and regardless of income or credit, now have the ability to fund their retirement using the equity in their homes, alleviating mortgage payments, and receiving either a lump sum or monthly pay-outs as long as the borrower(s) remain in the residence. For many, this option makes a world of difference, allowing for the sought after prosperous retirement years instead of barely scraping by on a budget. Reverse mortgage funds can be used for any purpose the borrower chooses, and is often used to help with every day expenses or long term medical costs.
Recently Premier Home Equity president and CEO Bart Johnson spoke at the National Reverse Mortgage Lenders Association (NRMLA) conference, stating that in his opinion, the reverse mortgage market is less than 2% penetrated.
“Older boomers need help to figure out how to finance longevity and retirement. The prospects for this program exploding are terrific. We will be much bigger, if not this year, then next.” said Johnson.
According to several sources there are an estimated 60 to 75 million boomers entering or approaching retirement. Financial and retirement planners in Northern Colorado and nationwide are educating themselves extensively on reverse mortgage in order to better use it as tool in future planning. They are working closely with reputable reverse mortgage lenders in order to fill in the gaps where retirees are looking for options.
Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado. Click here to contact Jan and learn if reverse mortgage is right for you.