Dec 15, 2016

Harvard: Reverse Mortgages Offer Realistic Solution to U.S. Aging in Place Crisis

With the incoming influx of baby boomers entering retirement age, the number of older homeowners will soar in the near future. While many will prefer to age in place, certain challenges will prevent these desires from becoming reality. But here is where a reverse mortgage can be a financially realistic option to help older homeowners alleviate cost burdens and comfortably age in place, according to a new report from Harvard University.
More than one in five people in America will be aged 65 or older by 2035. Furthermore, one in three households will be headed by someone 65 or older, according to the report released Tuesday by the Joint Center for Housing Studies of Harvard University.
Additionally, the number of homeowners 65 and older will be over 38 million by 2035 and renters will expand by 80% to 11.5 million.
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Aug 16, 2016

How Your House Can Save Your Retirement

After Joyce Ruvolo's husband passed away two years ago, she noticed a disturbing trend. "I found myself taking money out of the bank every month to pay the bills," says the 77-year resident of Boca Raton, Florida.
Unhappy with her cash flow situation, Ruvolo found a solution to her problem with Kathy Burns, a reverse mortgage loan specialist with On Q Financial. Burns helped set up a reverse mortgage, also known as a home equity conversion loan, which allowed Ruvolo to tap into the equity in her house and receive regular payments to supplement her income. "Kathy was wonderful, and the extra money I have in my pocket at the end of the month makes up the deficit I had before," she says.

Aug 15, 2016

New Research Links Reverse Mortgages to Financial Well-Being

Senior homeowners can tap into their home equity in a variety of ways, whether that means taking a reverse mortgage, a home equity line of credit (HELOC) or cash-out refinance. But when it comes to deciding between these different extraction methods, reverse mortgages can have a positive impact on financial well-being of borrowers, according to the results of a recent study.
Extracting home equity through borrowing allows households to smooth consumption access liquidity without the substantial costs of selling the home. It also may allow seniors to pay-off higher cost debt and diversify their asset portfolio, says the studyfrom Ohio State University titled, “How Home Equity Extraction and Reverse Mortgages Affect the Financial Well-Being of Senior Households.”
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Aug 8, 2016

Forbes: Where Reverse Mortgages Fit in ‘New World’ of Retirement Income

The retirement picture is changing every year and for many Baby Boomers who are thinking about retirement, some may not have as much as they had hoped in their retirement savings. The old “4%” rule is outdating itself and retirees are seeking alternative options, explains a recent article from Forbes.
One alternative that may be an option for some is to take a reverse mortgage. With a reverse mortgage, a borrower can turn part of the equity in their home into a lump sum payment or another option that functions similar to an annuity, the article explains. The program was also made more attractive after the new reforms to the program have taken place in the last few years.

Aug 3, 2016

Huff Post: Use a Reverse Mortgage to Save Your Retirement

The option of tapping into home equity in the form of a reverse mortgage has long been an option for older adults who wish to age in place. And recently, there have been many changes to the program that are giving the Home Equity Conversion Mortgage (HECM) program a better name, explains a recent article from The Huffington Post.
There are some potential dangers for Baby Boomers as they move into retirement, the article explains. Being the sandwich generation, they could be dealing with their aging parents as well as supporting their own children who may have massive student loans and no job, but a reverse mortgage may be able to help retired boomers.
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AAG Debuts First Reverse Mortgage TV Spot Featuring Tom Selleck

This week, Emmy and Golden Globe award-winning actor Tom Selleck will appear before national television audiences when the first commercial airs featuring him as a reverse mortgage spokesman for American Advisors Group (AAG). The new TV spot, which began running across cable and national TV networks Monday, is titled “Too Good to Be True,” and features Selleck ambling room-to-room in a lofty apartment home, letting viewers know that reverse mortgage misperceptions are far from the truth.

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