Percentage of House Value That Could Be Borrowed Through Reverse Mortgage at Ages 65, 75, and 85, 1990-2005

Percentage of House Value That Could Be BorrowedThrough Reverse Mortgage at Ages 65, 75, and 85, 1990-2005 Year 65 75 85 1990 20.4% 34.1% 51.7% 1991 26.5% 40.2% 57.0% 1992 28.8% 42.6% 58.7% 1993 35.1% 48.2% 63.1% 1994 22.2% 36.0% 53.4% 1995 36.1% 49.1% 63.7% 1996 28.8% 42.6% 58.7% 1997 37.1% 50.0% 64.4% 1998 43.7%... Read more »

Percentage of House Value That Could Be Borrowed
Through Reverse Mortgage at Ages 65, 75, and 85, 1990-2005

Year 65 75 85
1990 20.4% 34.1% 51.7%
1991 26.5% 40.2% 57.0%
1992 28.8% 42.6% 58.7%
1993 35.1% 48.2% 63.1%
1994 22.2% 36.0% 53.4%
1995 36.1% 49.1% 63.7%
1996 28.8% 42.6% 58.7%
1997 37.1% 50.0% 64.4%
1998 43.7% 55.4% 68.3%
1999 28.8% 42.6% 58.7%
2000 40.3% 52.6% 66.3%
2001 41.4% 53.6% 67.0%
2002 51.3% 61.4% 72.3%
2003 49.9% 60.4% 71.6%
2004 48.6% 59.3% 70.9%
2005 47.4% 58.4% 70.3%

Note: This figure assumes a $200,000 house, a 1.5 percent lender’s margin and the closing cost estimates used in AARP’s online reverse mortgage loan calculator.

Calculations based on: 1) Federal Reserve Bank of St. Louis. 2006. “Series: GS10, 10-Year Treasury Constant Maturity Rate.”; 2) U.S. Department of Housing and Urban Development. 2006c. “Table of Principal Limit Factors.” News Release No.06-001. Washington, DC.; 3) AARP. 2006b. “Reverse Mortgage Calculator.”

Source: Center for Retirement Income at Boston College

© 2009 RIJ Publishing. All rights reserved.