With the incoming influx of baby boomers entering retirement age, the number of older homeowners will soar in the near future. While many will prefer to age in place, certain challenges will prevent these desires from becoming reality. But here is where a reverse mortgage can be a financially realistic option to help older homeowners alleviate cost burdens and comfortably age in place, according to a new report from Harvard University.
More than one in five people in America will be aged 65 or older by 2035. Furthermore, one in three households will be headed by someone 65 or older, according to the report released Tuesday by the Joint Center for Housing Studies of Harvard University.
During an era that will see vast quantities of older people with low incomes and high housing costs, reverse mortgages—if used strategically—could provide another solution for helping older homeowners facing cost burdens.
“For those homeowners with mortgages they cannot afford but who still have substantial home equity, reverse mortgages may make it more financially feasible to age in place,” the Harvard report states. The report also includes information on projections of older population and households, tenure and housing circumstances of older adults, disabilities of older adults, the financial situation and implications for housing.
May this holiday season be happy and bright for you, always full of hope and gratitude.