As I am writing this post, it was noted today that inflation has increased to 7%, the highest it has been in many years, and although, I am not an economist or a financial advisor, and certainly not qualified to discuss why this is happening, I do know that it is affecting how much a dollar can buy.
Most seniors are on fixed incomes, and sometimes they only have social security to rely upon to use towards their monthly expenses. There was a slight increase for 2022, but it is essentially wiped out due to the increase costs of food, utilities, and goods.
Given the costs of medical insurance, unplanned medical expenses, or home repairs and maintenance, many seniors do not have enough money each month to cover even their essential and ongoing expenses.
My more recent reverse loan clients are taking advantage of historically low mortgage interest rates, and increased equity in their homes and are refinancing and using a reverse loan to eliminate their concerns about running out of money.
They have no mortgage payments, access to their equity for additional income, and still own their home.
Life is so uncertain at this time, due to the Pandemic and social issues, but at the least funds from a reverse loan could be an antidote for financial insecurity.