Why Are Reverse Mortgages Gaining Popularity?

Most people refer to the state of California as the Golden State but is that really the reality? The truth is California's population increase has slowly been declining over the years to less than 1 percent growth per year.

With the decline in growth, the number of people aged 65 or older will be substantial as fewer young people make up the population. Those 65 or older already account for a large percentage of California's population and this number is expected to double over the next 15 years according to the Public Policy Institue of California. Seniors will rise from 12 percent of the current population to 19 percent by 2030 (or just a mere 14 years.)  

Enjoying the Gray Years in California

What does this mean for the large number of people who will be entering their graying years in the Golden State? It clearly indicates a vast increase in medical and health support services needed. The postwar baby boomers will be the core of California's surge in the senior population. These baby boomers, most of whom are already over 65, will be leaving the workforce and as they get older will impose major new costs on taxpayers for heath care services.

How do reverse mortgages play into the picture?

With health care services and costs rising, the government has began pushing Reverse Mortgages as a solution. Why? For those 62 or older who qualify, a reverse mortgage will allow healthy seniors to stay in their home longer which in turn requires less assistance from the government. It creates an alternative source of income to these seniors by eliminating the out of pocket monthly mortgage payment. Even if the senior owns their home free and clear, they still have an option with a reverse mortgage for a monthly draw. Again, the monthly draw will allow the senior to stay in their home and provide coverage for additional health expenses they might be incurring. 

If you have questions on reverse mortgages or would just like to know more about your options, please give me a call at my direct number, (760) 574-8486.