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Insights Relating To San Diego Reverse Mortgage
The reputation of the reverse mortgage in a particular region is determined by the existence of a sizable senior population and a concentration of fairly valuable property. San Diego has both, and is an example of wider demographic shifts as exposed in the 2010 census. It's no surprise that San Diego reverse mortgage number has been increasing!
The most recent census revealed that individuals age 65 and over constitute 13.4% of the United States population, a record high. This development of the senior part of the population is being called the biggest demographic shift in history. Over the last decade, the senior population increased to 15.1% nationwide, yet grew 23.5% in the West, which implies that region is leading the demographic shift. California already is the state with the largest number of senior residents, with 4.2 million, followed by Florida with 3.3 million. It is anticipated that by the year 2030, those 65 will number 72 million and make up almost 20% of the population.
Within California, San Diego furthermore exemplifies these demographics. The median age is escalating in San Diego and is anticipated to continue to rise even more as the baby boomers grow older. The senior population is not simply growing, it is growing at a quicker rate than the total population in the county. The census forecasted that from 2000 to 2030 the 60-plus population of San Diego county will increase by 130%, and the 65-plus population will grow at the same pace, while the county population as a whole will only have a 38% increase.
The reverse mortgage program started out in 1988 and is only available to those age 62 and older. There have been 6637 loans created in 2000, with a dollar volume of $827M. This grew to 114,641 loans in 2009, with a dollar volume of $30.2 billion. Understandable by demographics, California and Florida have been vying with one another for the most reverse mortgages made each year, with California having a broad lead in the overall amount of reverse mortgages originated.
However an aging population is not the only factor in determining if a Home Equity Conversion Mortgage (the program's more specialised name), or HECM, will take hold in a certain region. Home value is critical. Especially because the borrower can only get a portion of the value, depending on the age of the youngest borrower, the loan becomes more attractive as the value of the home rises and the size of the loan proceeds thus grows up.
However, the home values can't be way too high either. The highest value FHA will understand for purposes of the loan is $625,500. San Diego's median home value is just about $300,000, something of a Goldilocks median value (just right), and absolutely more generally attractive for loan purposes than the median value of homes across US, which is about $125,000. This makes San Diego a prime prospect for reverse mortgages, being part of the West's aging demographic as well as having the kind of property values where this sort of loan can make a big impact on a borrower's financial circumstances. In fact, the San Diego reverse mortgage number of September 2011 was a year over year increase of more than 11% from September 2010.
Chances are the San Diego reverse mortgage volume will only continue to grow, especially if, in addition to aging and value factors, the economy continues to provide challenges to seniors.
Insights Relating To San Diego Reverse Mortgage
The popularity of the reverse mortgage in a given area depends upon the presence of a sizable senior population and a concentration of relatively valuable real estate. San Diego has both, and is an example of broader demographic shifts as revealed in the 2010 census.
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