For seniors who want to stay in their homes but are burdened with mortgage debt, more will have to rely on reverse mortgage during retirement, according to a New York Times article.
As 30% of homeowners age 70 and older have mortgages to pay off, according to data from the Consumer Financial Protection Bureau (CFPB), and the retiree population expected to surge in the coming years, the article suggests there will be a spike in demand for reverse mortgages over the next decade.
“But as they struggle to cover mortgage costs along with health care bills, property taxes and home insurance, more older Americans may have to rely on reverse mortgages to remain in their homes,” writes the NY Times.
Citing an associate professor from Ohio State University who is commissioning a study of 32,000 people who sought reverse mortgage counseling, the article suggests that the study data confirms the debt trend for older adults and the appeal of reverse mortgages—as 60% of respondents took out a reverse mortgage, while about half already had mortgage debt.
Written by Jason Oliva