Record senior home equity is fueling demand for new solutions for older American homeowners

"With refinances scarce and mortgage rates still elevated, that stockpile has become the most durable growth story in housing financeand one of the most practical ways to help older households manage expenses, preserve independence and stay in their homes. The question is not whether the equity exists. It's whether today's lending products are structured to meet the realities facing this demographicmany of whom may be retired, semi-retired or working later in life on fixed or reduced incomes."

"Millions of homeowners 62 and older are navigating limited or fixed incomes while facing rising housing costs. Tapping into the equity they've built in their homes even in small, carefully planned amounts can help cover expenses like home repairs, in-home care or everyday bills. When used responsibly, home equity becomes more than just a personal financial resource, but also an industry opportunity to provide responsible senior lending solutions and strengthen long-term client relationships."

"Reverse mortgages remain a cornerstone of senior lending, offering strong advantages and built-in consumer protections. Yet, despite growing awareness, they are still widely misunderstood and shaped by years of misconceptions. While more consumers and financial professionals are beginning to recognize the benefitssuch as the option to forgo monthly mortgage payments (borrowers must continue to meet loan obligations, including property taxes, homeowners insurance, and home maintenance)many older homeowners continue to feel more comfortable with traditional products like a home equity line of credit (HELOC)."

Older American homeowners hold substantial home equity accumulated through decades of ownership. That equity has become a durable source of value amid scarce refinances and elevated mortgage rates. Many homeowners aged 62 and older face limited or fixed incomes while housing costs rise. Carefully tapped home equity can cover repairs, in-home care, and daily bills and can help seniors remain independent in their homes. Reverse mortgages offer protections and advantages but remain widely misunderstood. Traditional HELOCs often require high incomes, involve complex applications, and can produce unpredictable payment spikes that may strain seniors financially.

Read at www.housingwire.com