Golden Gateway recently released its third quarter usage data from its online calculator which shows that seniors are seeking shelter from the current economic crisis. The data paints a troubling picture of those senior citizens, especially in California where senior forward mortgage debt is 50 percent more than the national average.
"Seniors across the nation have been hit by a hard one, two punch with falling home values and now the reeling stock market," said Eric Bachman, founder and CEO of Golden Gateway Financial. "Many older Americans are exploring reverse mortgages as a proactive way to gain more control over their finances in today’s economy."
Other observations from the data:
- The average age of those seeking a reverse mortgage has increased by almost a full year from the first quarter of 2008.
- Senior citizens self-reported a 4.5% decline in third quarter home values as compared to the first quarter of 2008.
- The average national existing forward mortgage debt of senior citizens in the third quarter of 2008 was $146,217.
- In California, the average existing forward mortgage debt in the third quarter of 2008 was 50 percent greater than the national average at $219,321.
- In California, during the month of September, the average forward mortgage debt as reported by seniors was $211,411 or 74 percent of the month’s reported home sale price of $283,000 across the state (as reported by DataQuick)