“Will Reverse Mortgages Rescue the Baby Boomers?”

The Center for Retirement Research at Boston College has come up with another great topic: “Will Reverse Mortgages Rescue the Baby Boomers?”

In their email announcing this new publication, the Center summarized its findings:

• Reverse mortgages will become more popular as baby boomers reach retirement with insufficient income.

• At current interest rates, a 65-year-old household with a $200,000 house could borrow about half of its home value.

• The amount available through a reverse mortgage is very sensitive to interest rates, so households should not overestimate their accessible home equity.