Rising Senior Home Values Make Reverse Mortgage Loans More Advantageous
Things are looking up for senior homeowners who have been struggling to rebuild their retirement plans after the Recession.
According to the latest Reverse Mortgage Market Index released by NRMLA and RickSpan, published along with an article in Reverse Mortgage Daily, senior home equity rose $83.5 billion in the last quarter of 2013, bringing total values closer to the 2006 peak level of $4 trillion.
This is good news for baby boomers that have been thinking of getting a reverse mortgage loans in order to supplement their retirement but have decided to wait because their home values have been lowered than expected.
The increase is the result of an estimated $84.1 billion rise in aggregate value, which was lowered by a $600 million increase in mortgage debt held by seniors.Thankfully, debt among seniors has not risen as high as home values, making the reverse mortgage loan a possibility for many seniors.
Originally created as a way for seniors to age in place comfortably, the reverse mortgage loan has recently gone back to basics, offering seniors the funds to pay off their mortgage and save the rest in a rainy day account or the possibility of rebuilding their retirement plans with a solid foundation.
With the news of rising home values, there is no better time to get a reverse mortgage loan than right now.Complied with the recent changes to the product, which have made it safer for both borrowers and FHA, the reverse mortgage loan industry is once again offering fixed rate loan.
As a retirement planning tool, the reverse mortgage can mean many things to many people. It can be an additional source of monthly income, it can be a way to live without monthly mortgage payments for as long as you live in your home or it can be a rainy day fund, tucked away safely until it is necessary.
The reverse mortgage loan is no longer what it was, it’s time to reconsider your retirement options and begin to plan for your retirement, quickly and effectively.
Be aware that while you cannot lose your home under normal circumstances, foreclosure may occur if you do not pay your taxes and insurance and otherwise comply with the loan terms
If you want more information on the reverse mortgage program give PS Financial Services a call at (888) 845-6630 or via email at info@PSReverseMortgage.com. We do not pressure those who inquire. We are simply here to help.