America has an estimated 77 million baby boomers about to reach their golden years. In the bastion of capitalism it is quite interesting to see how the capitalists are doing good business in the form of providing reverse mortgages.
Looking at the aging population, reverse mortgage is a huge business and the lending community is eager to provide this special type of loan.
Though less than 2% of seniors have decided to turn the equity in their homes into cash by taking out a mortgage that pays them instead of the other way around, half of those reverse loans were written in the last two years.
Reverse mortgages, also known as home-equity conversion loans, enable homeowners age 62 or older to convert their equity into tax-free proceeds. The amount you can receive is based on the age of the youngest owner, the value and location of your home and current interest rates. Generally, the older you are, the more you can get.
For the US, the boomers are coming and they can get their houses to start paying them back.