Boomers Expected To Embrace Reverse Mortgages

8/09/2007

posted by N. Sioris

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Reverse Mortgage industry experts are expecting baby boomers to embrace the use of reverse mortgages with open arms. Unlike previous generations, the boomers are accustomed to leverage, borrowing, and using financial services. Combining the attitude of the average baby boomer along with factors like increased life expectancy, social security's uncertainty, diminished pension plans and low savings rates there is hardly any doubt that the baby boom generation will be looking at home equity as a retirement income source.

The minimum age requirement to obtain a reverse mortgage is 62. The oldest baby boomers will turn 62 next year. 78 million baby boomers will turn 62 between next year and 2026. The Reverse Mortgage industry is poised for an explosion in demand for reverse mortgage products and services. It is estimated that by 2030 there will be $37 Trillion in home equity controlled by this generation.

You can be sure, that this much equity is attracting a lot of attention. Lenders are gearing up and many new proprietary reverse mortgage products are being introduced to the market. Competition will be fierce among lenders and the consumers will be the beneficiaries. If you have looked into a reverse mortgage previously and were disappointed by the amount of money you could receive or the cost of obtaining a reverse mortgage, be sure to keep an eye on the development of the reverse mortgage market. Things are changing rapidly and what was offered a few months ago, may be quite different from your options today. Subscribe to this free Reverse Mortgage Newsletter, and stay up to date on what is being offered. You may find that a reverse mortgage is right for you after all.