Results from Golden Gateway Financial’s reverse mortgage calculator showed that falling home values continue to negatively impact the amount of money available to Americans through a reverse mortgage.
Despite falling home values, the company also reported a increase of nearly 90 percent in the number of individuals researching reverse mortgages compared to the previous quarter
"Older Americans continue to feel the lingering effects of the recession more than other segments of the population, and a growing number of them are actively looking for ways to generate additional cash in retirement," said Eric Bachman, founder and CEO of Golden Gateway Financial.
Additional observations from the data include:
- The average age of users remained roughly consistent
Self-reported senior home values dropped nearly ten percent by almost $40,000 between the second and third quarters of 2009 - The median reported home value dropped below $300,000 for the first time in more than a year
- The average existing mortgage debt fell by approximately $8,000 from the previous quarter
- The amount of max monthly payments available more than doubled between the second and third quarters of 2009
Below is a copy of the results from the calculator
| Reverse Mortgage Calculator National Averages | |||
| Q1 ’09 | Q1 ’09 | Q1 ’09 | |
| Average age | 69.5 | 69.3 | 69.4 |
| Average home value | $413,371 | $407,557 | $369,762 |
| Median home value | $300,00 | $300,00 | $270,000 |
| Percent with existing mortgage | 49.9% | 49.8% | 51.3% |
| Average existing mortgage debt | $161,265 | $152,455 | $144,497 |
| Average max up front payment | $143,872 | $151,089 | $136,711 |
| Average max monthly payment | $922 | $1097 | $993 |
