The Mortgage Hurdle To Retirement

More and more homeowners are carrying a mortgage debt, which is affecting retirement and spending for baby boomers.  As of 2011, nearly one-third of homeowners over the age of 65 had a mortgage compared to 22% in 2001 according to the Consumer Protection Bureau.  The LA Times recently published an article titled, "Many Seniors Trying to Retire With a Mortgage", and it gives real life scenarios of two separate baby boomers who used a reverse mortgage to help finance their retirement.  Read the entire article here.

No Longer a Seller's Market

It seems like there is a shift in the market, again.  Redfin's July 2014 Housing Market report states that, "seller's are finally catching on that it's not a seller's market anymore."  The result is from a slowdown in home price growth as well as a shift in pricing power from sellers to a more balanced market.  The ending of summer and start of fall will also motivate sellers to drop their listing prices further in attempt to sell before the end of the year holidays.  Read the entire report here.

Financial Planners Should Recommend Reverse Mortgages

A recent article in Financial Planning suggests that financial planners should consider recommending reverse mortgages for elderly clients and for the parents of middle-aged clients.  Jim Kinney from Financial Pathway Advisors tells Financial Planning that "Reverse mortgages can be a very useful tool for seniors who plan to stay in the home for a long time."  He goes on to say that "For seniors who are short on liquid funds for an emergency, the HECM (home equity conversion mortgage) line of credit can be a lifesaver."  Click here to gain access to the article.

Harvard Study Suggests Reverse Mortgages Can Help

On September 2nd, 2014, a report was released by the Harvard Joint Center for Housing Studies and the AARP Foundation.  The executive chairman, Henry Cisneros, stated, "We have a big problem....Many aging Americans don't have personal savings, and governmental budgets are strapped."  The study goes on to say that reverse mortgages can offer financial security for those whom are eligible.  It adds that a reverse mortgage can provide much needed income for those who have most of their wealth in home equity.  The entire report is available by clicking here.