California Reverse Mortgages by your Sacramento Reverse Mortgage Provider

Baby Boomers ‘Under Water’

by Jeffrey Bangerter
March 31, 2009

One of the most interesting issues I have noticed as President of WSB Mortgage Services, Inc. is how many seniors decide not to do the Reverse Mortgage because they want to leave their home to their children, which means the senior is willing to do without so that their children will have more after Mom and Dad die.

Almost all of the children I have spoken to say they want their parents to enjoy their lives and use whatever monies they can to allow them to do whatever they want in their later years.

Here is the real thought I don’t understand; if your children are hurting now, if they are “Under Water” on their mortgage now, why wait until you die to help them?

If you are willing to do without so they can have more why not help them now while the economy is down and then when things pick up they will be even better off?

The New York Times article points to a report that estimated that 30 percent of homeowners aged 45 to 54 were in this predicament, known as being “under water.” (About 15 percent of older baby boomers, 55 to 64, fell into that category as well.)

The report also found that baby boomers in the 45-to-54 group saw their overall net worth plummet by about 45 percent over the last five years, to a median level of $94,200 from $172,400.

The report continues; Even baby boomers who aren’t under water could have a more difficult time affording retirement.

According to the center’s report, five years ago, the median baby boomer household, with people aged 45 to 54, had enough net assets to generate about $14,000 in annual interest once the homeowners reached age 65.

Now, that figure is just under $8,000.

If you really want to help your Adult Children, is waiting until you die really the best solution?

Get a Reverse mortgage quote today and see if you can’t provide a solution for your family now.