New HUD Data on Reverse Mortgages
New data from the Department of Housing and Urban Development (HUD) reveals that more than 300,000 seniors have used the federally-insured Home Equity Conversion Mortgage (reverse mortgage) program to generate cash without the necessity of selling or leaving their home.
More than 76,000 seniors obtained a reverse mortgage through HUD last year, compared with only 6,637 in year 2000.
With 78 million baby boomers about to turn 62 in the next couple of years, reverse mortgages are expected to become a pivotal part of many retiree’s overall financial planning formula. More seniors are recognizing that traditional retirement tools, such as IRA’s, pensions, 401(k)s and meager Social Security benefits are not going to provide sufficient income to help fund everyday living expenses and health care over their life expectancy.
Written by charles dennis on July 8th, 2007 with
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