As the years go on, more seniors are entering retirement with home mortgage payments.
Soon, if not eventually, they become a burden.
How large is your mortgage “bite” in the household “apple”?
New research now points to an increase of baby boomers entering retirement with house payments. Consider what a HECM mortgage can do to free up household budget by eliminating the mortgage payments you have. Ask for a free look at the mortgage “pie” by requesting a HECM ANALYSIS here. See navigation bar tab “information” for contact details.
Paying off the mortgage, once a widespread rite of passage for homeowners approaching retirement, has become less common in recent years. Concerns are mounting that the increased prevalence of housing debt among older homeowners could compromise financial security in retirement by expanding housing affordability problems, crimping essential non-housing spending, increasing vulnerability to home loss through foreclosure, or limiting the accumulation of housing wealth.
These concerns are amplified by the fact that the large Baby Boomer generation, which includes about 33 million owner occupants, has begun to reach retirement age. Although multiple studies have documented the rise of housing debt among older homeowners, prior research has not focused on how Boomers’ mortgage status has changed as they’ve approached retirement age. Importantly, previous research has not investigated whether Boomer homeowners have begun to extinguish their housing debts more rapidly as the economy and housing market have emerged from recession.
The leading edge of the large Baby Boom generation has reached retirement age with a greater likelihood of carrying housing debt, raising concerns about the retirement financial security. The oldest Boomers, who were aged 65-69 in2015, were 10 percentage points less likely to own their homes outright than were pre-Boomer homeowners of the same age in 2000.
Enter the innovative Home Equity Conversion Mortgage (or HECM), a mechanism for eliminating the payments without payments, utilizing home equity to fill the income gap.
We can make this happen for you if you are 62 or more, have 50% (or more) home equity and the desire to free yourself from these menacing payments.
See contact information in navigation bar for details.