By Dallas Riddick
There were approximately 35 million people in America aged 65+ in the year 2000. That number is expected to be about 72 million by the year 2030. This represents more than a 50% increase.
Colorado was one of only eight states that saw the population of people over the age of 65 increased by at least 30.4% from the year 2000 to 2010. That number is expected to be much higher by the year 2030.
People over the age of 65 are far less likely to change residence compared to the population under 65 according to the Administration on Aging.
This means that older people want to age in place. They want to remain in their homes as they get older. But many people in Colorado and across America are finding it financially difficult to make ends meet as they enter their retirement years. Others may have a healthy portfolio or savings for now but fear that they will run out of money at some point in their later years. Nobody should have to spend their retirement years hoping they die before they run out of money.
Reverse Mortgage Benefits
Many people have used a program that allows homeowners age 62 and older to tap into the equity in their home using a federally insured loan called a Home Equity Conversion Mortgage (HECM) or better known as a Reverse Mortgage.
HECM Reverse Mortgage borrowers can use the cash they receive any way they want to. You are able to take out a lump sum payment upfront, receive monthly payments, open a credit line or a combination of these.
Some people do not need the money right away but prefer to open a credit line using the HECM Reverse Mortgage. The credit line grows over time if not used. That way they can have the peace of mind of remaining in their home without the future fear of running out of money if they outlive their life expectancy.
Others need to supplement their income so they choose to receive a monthly â€œtenureâ€ payment which will continue for as long as they live in their home.
Still others choose to get as much cash up front as they can so they choose the lump sum payment option.
HECM Reverse Mortgages have a wide range of options and a combination of any of these can be chosen.
You can also choose between a fixed or an adjustable interest rate.
HECM Reverse Mortgage borrowers must continue to pay their real estate taxes and stay current on homeowners insurance. They must also continue to keep up with maintenance of the home and pay their utilities.
One of the benefits of HECM Reverse Mortgages is that they are non-recourse. This means that you or your heirs will never owe more than the home is worth at the time of sale even if your loan balance exceeds the value of your home.
Colorado Home Values
Home prices in many parts of Colorado and across the country had massive declines starting about 2007. Many homes were underwater. Toward the end of 2012 and early 2013 many areas around the country began to see steady increases in home values. The home price index in Denver gained 12.5% between August 2012 and May 2013 while homes in Denver have an average value of about $257,900 according to Zillow as of June 2014.
Whether you currently live in Colorado or are planning a move to Colorado or any other location in the U.S. and you’re considering a Reverse Mortgage, give us a call. Our Reverse Mortgage Bankers are federally licensed to lend in all 50 states.
Call us Toll Free 888.368.0222 or Contact us here.