reverse mortgages and alternatives: turning your home into a liquid asset
Open Access
Author:
Spencer, Daniel J
Area of Honors:
Finance
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
Louis Gattis Jr., Thesis Supervisor Dr. Brian Spangler Davis, Thesis Honors Advisor
Keywords:
Reverse mortgage Home Equity HELOC Forward mortgage
Abstract:
This study focuses on examining the financial well-being of homeowners after they have taken out a Home Equity Conversion Mortgage, Home Equity Line of Credit, and Forward Mortgage; and comparing the results. The study used over 57,000 HECM’s originated over the past year and used certain borrowing characteristics and assumptions to determine if a HELOC or Forward Mortgage would be a better option for the average HECM borrower. The study found that borrowers would be able to borrow $42,412.06 and 67,556.27 more, respectively, if they would take out a HELOC or Forward Mortgage.
