The National Reverse Mortgage Lenders Association last week released a report indicating that housing wealth for older homeowners reached $6.6 trillion in the fourth quarter of 2017. These homeowners, who are 62 years old or more, saw their equity soar $149 billion over the third quarter of 2017. The Reverse Mortgage Market Index, produced by NRMLA and RiskSpan, rose to 238.11 in Q4, which is an all-time high since the index was first created in 2000.
“Today’s retirees are more likely to leave the workforce with a mortgage and other debts that can put stress on monthly cash flow,” said NRMLA President and CEO Peter Bell. “In these situations, financial products that convert home equity to cash could be used to pay off revolving debt from credit cards and reduce or defer monthly mortgage payments. It’s worth doing the math to find out if a mortgage refinance, home equity line of credit, or reverse mortgage loan can help increase financial security during retirement.”
The organization also reports that on April 24, 2018 at 3:00 PM ET, NRMLA and Next Avenue will host a free webinar Q&A to answer consumer questions about using home equity to supplement retirement savings and support aging in place. Registration details are available on NRMLA’s consumer education website reversemortgage.org.