CNN reports that baby boomers are creating unprecedented demand for reverse mortgages.
Renowned as being spenders rather than savers, says the news provider, boomers are proving to be only too happy to borrow against all or some of their home to finance their retirement lifestyle.
Reverse mortgages allow boomers to borrow against the equity in their homes, providing additional funds to support themselves in retirement. Debt and interest builds up over time and may be repaid by the beneficiaries of the estate when they sell the home.
Research group Datamonitors says most people take a lump sum of between $40,000 and $50,000 and splurge on a new car or holiday. Others elect to take a few hundred dollars extra each week to support a more comfortable lifestyle.
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