Glen Smart

Senior Loan Officer
  • Manager of Reverse Mortgage Division
    NMLS# 208695
    LMB# 100052967
  • Office: 520.495.7237
  • Cell: 520.245.8830
  • Fax: 520.777.9647
  • send me an email
6893 N. Oracle Rd
Suite 121
Tucson, AZ 85704

Licensed to originate mortgage loans in the following states: AZ, CO, CA

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Financial Literacy Month - Surprising facts

This is Financial Literacy Month and I wanted to share some statistics courtesy of the National Reverse Mortgage Lender's Association:

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Senior Population

- Most individuals only assume an average lifespan yet 1/3 of married households will have at least one spouse live to age 92

- About half of households 55 and over have no retirement savings

- The average annual savings rate in the U.S. is only 5.7& compared to a peak of 13% in the early 1970s

- 52% of working age households are at risk of not being able to maintain their standard of living in retirement

- Only 16% of pre-retirees (50+) are financially prepared for a retirement lasting 20 years

 

Social Security

- 30% of women currently drawing Social Security say their Social Security payment is less than they expected

- Social Security provides most of the retirement income for about half of households 65 and older

- 17% of women who are currently drawing Social Security wish they could change their decision and file later

 

Home Equity Loans

- Half of older homeowners held at least 50% of their total net wealth in the form of home equity in 2013

- Only 19% of HELOC borrowers surveyed understood that a HELOC reset will increase their monthly payments

- 34% of HELOC borrowers believe their monthly payment will be reduced when their HELOC resets

- Nearly 37% of seniors are concerned about retirement finances but only 6% are willing to tap home equity

- 1/3 of borrowers who opened HELOCs prior to 2011 are unaware of their draw period expiration date

 

Today's reverse mortgage is an important piece of any retirement planning discussion.  With a reverse mortgage, seniors can access the equity in their home to meet their cash flow needs.  The reverse mortgage can also be an important backstop to any financial plan.  With this unique loan for seniors, there are no required monthly mortgage payments and seniors can customize the way that they access the funds.  Unlike Home Equity Lines of Credit, reverse mortgages don't have set end dates and the benefits can increase with time. 

If you or a loved one are a senior, it's vital that you find out more about what a reverse mortgage can do for you.  This program isn't right for everyone but for many it's a perfect solution!

 

 

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