Home values have skyrocketed since the beginning of the pandemic, and older Americans have over $11 trillion dollars of equity their homes, and that is an astounding figure. Aging can be a struggle because so many unexpected things can happen such as a medical emergency or major home repairs, and most older adults do not have the funds to cushion themselves against unplanned events, but more seniors are using funds from a reverse loan to pay the costs for repairs, home modifications or medical care.
Now that mortgage rates have increased, some may be asking themselves is it too late to refinance into a reverse loan? The answer is "no". With the increase value of many homes, there is an enormous amount of "cash" sitting in it's space, and although interest rates are higher than they were a year ago, so is the amount of equity in everyone's home.
This is as a good time as any to apply for a reverse loan, because eventually home values will start to decline as Buyers will choose to wait to possibly purchase a home at a later date. The Real Estate market is slowing turning to the advantage of possible Buyers, thus sales prices will decline.
And so will a senior's equity.
Is now a good time to do a reverse loan?
Yes, don't wait too long, and lose some of the equity by "thinking" about it, now is a great time to apply for a reverse mortgage.
