Mortgage - Few Facts You Should Know

Reverse mortgage can be a great opportunity for many Americans who are looking for an opportunity to turn their existing home value into monthly income. Reverse mortgages enable seniors age 62 or older to convert a portion of their home equity into tax free cash that can be used for any purpose, such as retirement needs, paying medical bills or achieving other goals.

“The idea of using home equity to finance retirement is becoming increasingly main stream, even among the current generation of seniors who have traditionally been debt averse,” said Peter Bell, President of the National Reverse Mortgage Lenders Association. “The home increasingly plays a role as a retirement asset.”

With Americans age 62-years-old or older holding an estimated $4.3 trillion in home equity, there is plenty of opportunity for seniors to capitalize on this new way of utlizing the value of their home.

According to the National Reverse Mortgage Lenders Association, the reverse mortgage industry has seen tremendous growth in the last five years. However, only a little more than 300,000 reverse mortgages have been originated in its short history. This represents less than one percent of the $4.3 trillion market.

In the first quarter of 2007 alone, there was a $19 billion increase in senior home equity. As the baby boomers approach retirement age, a larger portion of aggregate U.S. home value will be held by seniors.

"The current estimated level of $5 trillion in senior home value could potentially double to exceed $10 trillion in the next ten years,” said Liz Scholz, Managing Director with the Hollister Group in Washington D.C. While reverse mortages have many advantages, you should discuss the details of reverse mortgage with your financial advisor to ensure that a reverse mortgage is the best opportunity for you.

There are times when a reverse mortgage may not be the best choice for you to make. The NRMLA represents the reverse mortgage industry, serving as an educational resource, policy advocate and public affairs center for lenders and related professionals. For more information, visit http://www.nrmLaonLine.org.

By Daniel S. Short
Simply Seniors News staff
http://www.SimplySeniorsNews.com