Industry News

Up to $695 billion accessible for reverse real estate loans

Mortgages can help seniors pay for long-term care

Reverse mortgages could help an estimated 13.2 million elderly homeowners pay for long-term care, according to a report published by the National Council on the Aging. Of the 13.2 million eligible households, an estimated 9.8 million currently have an impairment that can make it difficult to live at home, according to the study, "Use Your Home to Stay at Home: Expanding the Use of Reverse Mortgages to Pay for Long Term Care." The study had support from the National Reverse Mortgage Lenders Association. A reverse mortgage is a loan that enables homeowners 62 or older to borrow against the equity in their home, without having to sell their home, give up title, or take on a new monthly mortgage payment. In total, these households could access as much as $695 billion through reverse mortgages. A borrower aged 75 years old with a home worth $100,000 could receive a reverse mortgage that could pay a family caregiver $500 a month for almost 12 years, $1,120 a month in adult day care s...

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