People Researching Reverse Mortgages Jumps Almost 90% Says Data
October 29th, 2009 | by admin Published in Golden Gateway, News, Reverse Mortgage | 9 Comments
Results from Golden Gateway Financial’s reverse mortgage calculator showed that falling home values continue to negatively impact the amount of money available to Americans through a reverse mortgage.
Despite falling home values, the company also reported a increase of nearly 90 percent in the number of individuals researching reverse mortgages compared to the previous quarter
"Older Americans continue to feel the lingering effects of the recession more than other segments of the population, and a growing number of them are actively looking for ways to generate additional cash in retirement," said Eric Bachman, founder and CEO of Golden Gateway Financial.
Additional observations from the data include:
- The average age of users remained roughly consistent
Self-reported senior home values dropped nearly ten percent by almost $40,000 between the second and third quarters of 2009 - The median reported home value dropped below $300,000 for the first time in more than a year
- The average existing mortgage debt fell by approximately $8,000 from the previous quarter
- The amount of max monthly payments available more than doubled between the second and third quarters of 2009
Below is a copy of the results from the calculator
Reverse Mortgage Calculator National Averages
Q1 ‘09
Q1 ‘09
Q1 ‘09
Average age
69.5
69.3
69.4
Average home value
$413,371
$407,557
$369,762
Median home value
$300,00
$300,00
$270,000
Percent with existing mortgage
49.9%
49.8%
51.3%
Average existing mortgage debt
$161,265
$152,455
$144,497
Average max up front payment
$143,872
$151,089
$136,711
Average max monthly payment
$922
$1097
$993
- Related Posts
- Data Shows Older American Home Values Stopped Falling in 4Q
- Data Shows Seniors Seeking Shelter From Economic Crisis
- Seniors Considering Larger Up Front Payments From Reverse Mortgages
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October 29th, 2009 at 12:08 pm (#)
How is it that Mr. Bachman has determined that all of the uses of his calculator are made by seniors or more particularly, different seniors? To make that kind of claim requires far more than merely pulling numbers off of an online calculator. It requires work in verification and usually involves a whole lot of costs.
It seems “the” calculator uniquely shows that falling values reduce principal limits. What insight!!!
Falling values and other observations are only relevant in the context of where those homes are located and seniors live. To provide any insight into debt levels seems irrelevant unless it accompanies other data such as a range of home values, locations of the homes by area, etc.
Bloviate, bloviate, bloviate. Despite providing commentary on the summary of raw data grouped into less than meaningful categories, at least Mr. Bachman is finally referring to proceeds as money and cash.
October 30th, 2009 at 5:59 am (#)
The Critic should not be allowing to have any caffeine containing beverages!
October 30th, 2009 at 11:59 am (#)
Wishful thinking? The traffic at the both AARP and NRMLA calculators is down materially over the last six months (October vs April). Neither has ever had any paid links nor SEO so we consider them as good, neutral measures of interest in reverse mortgages.
October 30th, 2009 at 2:29 pm (#)
Wow!!! I need to check those ingredient labels again….
Enjoy your weekend.
October 30th, 2009 at 2:34 pm (#)
b_j_l
Here, here. That is exacly what Mr. Bachman should be proud of. You have hit the nail exactly on its head.
As to his insights, Mr. Bachman would be better off not making them. They are misleading at best.
October 30th, 2009 at 3:12 pm (#)
Maybe you need more fish in your diet. As you know, I tried it, and now the cat follows me everywhere.
October 30th, 2009 at 6:32 pm (#)
Some say that is the single greatest value in long-term care insurance but of course I strongly protest. I like dogs better.
October 31st, 2009 at 7:32 am (#)
Woof, meow.
March 8th, 2010 at 10:17 am (#)
I'm confused. Nothing new there. Here's what the article says:The national average self-reported home value of older Americans rose from $369,762 in the third quarter of 2009 to $381,895 in the fourth quarter of 2009 said Golden Gateway. Then they show a chart showing home values falling. Please enlighten me.
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