Industry Articles
Industry Articles Home > Reverse Mortgage News
|
Reverse mortgage can fund home improvement, meet income shortfall 2010-01-27 Reverse mortgages are useful tools for retirees whose income is insufficient, experts suggest. Boston College's Center for Retirement Research found that 51 percent of American households may not be able to maintain their living standards in retirement. The center's National Retirement Risk Index measures households' retirement readiness; when medical expenses are included in the index results, 61 percent of Americans are inadequately prepared for retirement. Including long-term care costs boosts the number of inadequately prepared people even further to 65 percent. Working longer and saving more can make a substantial difference in people's readiness, BC researchers suggest. But for people already in retirement, that advice may not be useful. Many older people are likely to need modifications to their homes if they want to age in place; according to a survey by RemodelorMove.com, the number of people who plan to remodel in the next year rose by 12 percent. And reverse mortgages are useful for funding a much-needed home improvement, particularly because they only come due when a borrower leaves his or her home. For people who want to stay in their homes in retirement, reverse mortgages can be a logical choice.  |
