NC Seniors Who Fall Short of Economic Security Can Find Relief with a Reverse Mortgage
The Center for Social and Demographic Research on Aging at the University of Massachusetts Boston estimates in a 2019 study that half of older adults living alone, and 23% of older adults living in two-elder households, lack the financial resources required to pay for basic needs. The findings rank states based on an Elder Economic Insecurity Rate (EEIR), which defines economic security as the income level at which older people are able to cover basic and necessary living expenses and age in their homes, without relying on means-tested income support programs, loans or gifts. North Carolina ranks 16th out of 50 states and the District of Columbia and has an EEIR of 51% for single older people living alone. With an EEIR of 51%, single older people in North Carolina are more likely to face economic insecurity than single older people living in 35 other states. Senior couples in North Carolina fair a little better with an EEIR of 21.5%.
What does all of this mean?
Many older adults who live independently do not have the financial means to remain self-sufficient and age in their own homes. Because a large percentage of seniors own their own homes, using the equity in their homes is an opportunity for financial security and remaining independent.
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More on How a Reverse Mortgage Could Help
For anyone 62 years and older who has significant equity in their homes, an HECM (Home Equity Conversion Mortgage) enables the homeowner to live in their home, without making a monthly mortgage payment. Though homeowners don’t have to make a payment, they may choose to do so at any time, and for any amount. Homeowners are still responsible for paying HOA dues, property taxes, and insurance, and keeping the property maintained.
A reverse mortgage can be a lifeline for so many seniors who face economic insecurity. Not only can they cover basic daily needs, they can use funds to cover medical expenses, and make important home repairs or modifications to improve their safety and mobility. More importantly, it can remove the stress and worry about having to leave their home.
Alpha Mortgage has been helping homeowners in North Carolina for nearly 40 years. If you think a reverse mortgage is right for you, speak with one of their Certified Reverse Mortgage Professionals to learn more about a reverse mortgage program for your specific needs.
Learn more about how people are using home equity conversion mortgages for purchasing homes:
Please keep in mind that the reverse mortgage industry in constantly changing and some of the information contained on this site may not be current. Please ask a licensed reverse mortgage professional for up-to-date guidelines.