Reverse Mortgage Stats

Knowledge is power! It's prudent to remain up to date with the mortgage industry and we want to share the facts with you, too!

Reverse Mortgage Statistics

Half of HECM homeowners have 50% of more of their net worth in their home’s equity.

For the average american couple at age 65, home equity makes up more than two-thirds of their total wealth, according to 2011 U.S. Census data. More specifically, the median net worth for married couples age 65 and older is $284,790. Of this amount, $192,552 is in home equity, and $92,238 is in non-equity assets, such as personal property.

Created as a solution to a newly widowed wife, reverse mortgages have seen rapid growth since its debut in 1961. The first congressional hearing concerning reverse mortgages took place in 1983, where the Senate approved a proposal to insure reverse mortgages by the Federal Housing Administration. President Ronald Reagan signed the reverse mortgage bill into law in 1988 and a decade later, the HUD Appropriations Act made the HECM program official. By 2009, for the first time ever, borrowers are allowed to purchase a new home without paying monthly mortgage payments. This year the loan limit increased to $636,150.

More than 20,000 HECM’s were made in 2017 (FY).

The National Reverse Mortgage Lenders Association reports today that homeowners age 62 and older saw their home equity increase by a combined 3.1% to $6.3 trillion in the first quarter of 2017.

In just three decades, the number of seniors in the United States will more than double. The population will be composed of more older Americans than at any point in the country’s history.

There are 32 million Babyboomer homeowners

In a study of 2,000 American Retirees, only 11% reported they use their home equity as a source of retirement income.

HUD requires that origination fees do not exceed 2% of the first $200,000 in home value and 1% of the home value over $200,000, with a hard cap of $6,000.

Additionally, the borrower will pay the initial mortgage insurance premiums, which will be a charge of 0.5% or 2.5% of the maximum claim amount.

Approximately 65% of people 65 or older are mortgage debt-free.