Home Equity Release Products, commonly referred to as reverse mortgages, allow people 62 and older to sell equity or future appreciation in a home they own in return for liquid currency. The consumer of the product enters a contract that allows them to reside in the home and not pay back the loan until the primary borrower dies, moves out, or sells their home. The attraction of this special type of mortgage is that it allows people to smooth income at an older age. This is very important considering it increases financial safety to our aging population. After reading this thesis, I hope you have a better understanding of the reverse mortgage products offered in the United States, and understand why they are important in this day and age. After reading this you should also have an understanding of the regression models and can see how different independent variables can affect the length of a reverse mortgage contract. We live in a country where the population is aging and people are living longer, thus understanding how these reverse mortgage products work will increase financial safety to our elderly, taking burden off of younger generations.
