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.

Reverse Mortgages Are Aimed To Boom

The FHA reverse mortgage program has been recently strengthened more than ever to attract Baby Boomers looking for additional sources of income to fund their retirements.  Recent government regulations have been modified to further protect senior borrowers from issues such as leaving a spouse unprotected and ensuring borrowers have sufficient assets to pay for property taxes and homeowner's insurance.  According to CBSNEWS, "The reverse mortgage is going to be a lifeline for millions of retirees in the years to come."  Read the entire article here.

Are Baby Boomers Downsizing?

Fannie Mae issued a recent article detailing that so far Baby Boomers have shown little sign in selling their homes to downsize or relocate.  Is it just a matter of time before they move or is it that they are still waiting for the housing market to peak?  Or could it be, as AARP found out in a survey in 2010, that nearly nine in ten Baby Boomers prefer to remain in the current residences for as long as possible?  The Fannie Mae article suggests that the inevitable will be that a large enough amount of Baby Boomers will end up relocating and causing quite a stir in the housing market.  Read the entire article here.