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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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.

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