These numbers substantiate my theory: Reverse Mortgages are not for everyone, but for the people who need them, a Reverse Mortgage is a LIFE SAVER!
77 million Number of baby boomers entering the senior sector
50% Federal Reserve estimate of boomers with NO retirement savings
$49,800 Average savings of those who have saved (other than home equity)
80% Seniors who have substantial equity in their home
81% Seniors planning to remain in their homes for as long as possible
43% Seniors unable to afford to remain in their homes without using a Reverse Mortgage
$80,000 Average national annual cost of basic nursing home care
4x Nursing home care compared to senior who remains in their home
595,000 Current number of active HECM Reverse Mortgages
$19 billion Annual cost of nursing home care for those 43% of RM borrowers who needed a reverse mortgage to remain in their home had they not done a reverse mortgage
The moral of this story is “get your ducks in a row” while the waters are calm. Don’t wait for a problem, anticipate the problem!