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Why a reverse mortgage may be worth it for seniors right now
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It’s never too late to explore ways to make extra money. With so many ways to make passive income and multiple side jobs, it can be simple to make additional income. For seniors, however, many of whom rely upon a tight budget made of savings and Social Security, their extra cash options may be limited. Fortunately, there is a safe and reliable method to explore: reverse mortgages.
Seniors aged 62 and older who have paid down all or most of their mortgage can leverage their existing homes by having a lender pay them (instead of the opposite, hence the “reverse” title). This can take the form of monthly payments or it can come in one lump sum. By using this accumulated home equity, seniors can easily supplement their income — and they will only have to pay the money back when they sell their home or die.
And right now may be a particularly opportune time to pursue this option. Below, we’ll break down three reasons why a reverse mortgage may be worth it for seniors right now.
See how much you could get with a reverse mortgage here.
Why a reverse mortgage may be worth it for seniors right now
Here are three compelling reasons why a reverse mortgage could be worth it for seniors today.
Borrowing costs are high
While inflation has steadily cooled from a 40-year high in June 2022, interest rates have remained high, with the benchmark interest rate range surging to its highest point in 22 years last summer and remaining there ever since. That’s caused rates on everything from mortgages to credit cards to personal loans to rise in tandem, making borrowing especially expensive right now.
If you’re coping with high interest debt in this climate — and don’t want to consider debt relief options as an alternative — then a reverse mortgage could be an attractive option. Depending on how much of your home you’ve paid off, you could be looking at a substantial amount of equity to tap into right now, which can then help you pay down your existing, expensive debts.
Learn more about the help a reverse mortgage can provide here.
Relief may be delayed
To lighten expenses, today’s interest rates need to come down. And while hope for relief was high at the start of 2024 it’s significantly dimmed since then thanks to a series of disappointing inflation reports. The latest, for February, showed inflation rising in the month to 3.2% — an increase from January and more than a full percentage point above the Federal Reserve’s target 2% goal.
Against this backdrop, at least one Fed official recently argued that interest rate cuts may not be on the horizon for this year either. That delayed relief will hurt many, leading to a search for alternative ways to make ends meet. A reverse mortgage could be one of them.
It may be better than the alternatives
If you’re a senior in need of extra cash, it can be helpful to research all alternatives. Unfortunately, right now, many may not be as advantageous as a reverse mortgage. Credit card interest rates are hovering around 20% right now while personal loans are in the double digits, too. Home equity loans and home equity lines of credit (HELOCs) can be beneficial for the right homeowner but since the home is used as collateral in those circumstances, it can be dangerous without a clear repayment plan.
But reverse mortgages don’t come with high rates — or the risk of losing your home. You’ll simply need to repay what you borrow if you sell the home or have a loved one do so after you have died.
The bottom line
With borrowing costs elevated, the prospect of relief uncertain and multiple, less-advantageous financing options, many seniors may find a reverse mortgage to be a viable way to boost their income — and pay down high-interest debt. While this option is only available for those 62 and older and will heavily depend on how much of your home has been paid off, it could be worth exploring for select homeowners right now. Get started here today.
The world’s oldest mummies have been around longer than the mummified pharaohs of Egypt and their ornate tombs — but the ravages of time, human development and climate change are putting these relics at risk.
Chile’s Atacama Desert was once home to the Chincorro people, an ancient population that began mummifying their dead 5,000 years ago, two millennia before the Egyptians did, according to Bernando Arriaza, a professor at the University of Tarapaca.
The arid desert has preserved mummified remains and other clues in the environment that give archaeologists information about how the Chincorro people once lived.
The idea to mummify bodies likely came from watching other remains naturally undergo the process amid the desert’s dry conditions. The mummified bodies were also decorated with reed blankets, clay masks, human hair and more, according to archaeologists.
While UNESCO has designated the region as a World Heritage Site, the declaration may not save all of the relics. Multiple museums, including the Miguel de Azapa Archaeological Museum in the ancient city of Arica, put the Chincorro culture on display. Some mummies and other relics are safely ensconced in those climate-controlled exhibits, but the remains still hidden in the arid desert remain at risk.
“If we have an increase in sea surface temperatures, for example, across the coast of northern Chile, that would increase atmospheric humidity,” said Claudio LaTorre, a paleo-ecologist with the Catholic University of Chile. “And that in turn would generate decomposition, (in) places where you don’t have decomposition today, and you would lose the mummies themselves.”
Other clues that archaeologists can find in the environment may also be lost.
“Human-induced climate change is one aspect that we’re really worried about, because it’ll change a number of different aspects that are forming the desert today,” said LaTorre.
Arriaza is working to raise awareness about the mummies, hoping that that will lead to even more preservation.
“It’s a big, big challenge because you need to have resources,” Arriaza said. “It’s everybody’s effort to a common goal, to preserve the site, to preserve the mummies.”
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NEW YORK – The man accused of killing three people when drove drunk into a crowd on the Lower East Side on July 4th was arraigned on a host of charges Saturday.
Daniel Hyden of Monmouth Junction, N.J. is charged with aggravated vehicular homicide, aggravated vehicular assault, manslaughter, assault and operating a motor vehicle while intoxicated charges. Hyden was driving with a suspended license, prosecutors said.
According to prosecutors, Hyden, 44, drove a Ford F-150 pickup truck into the crowd at Corlears Hook Park just before 9 p.m. local time. He allegedly ran through a stop sign at the intersection of Water and Cherry Streets, drove up onto the sidewalk, slammed through the chain link fence, and into the crowd.
Eleven people were killed or injured, prosecutors said. The three people killed have been identified as Lucille Pinkney, 59, and her son Herman Pinkney, 38, and Ana Morel, 43. Another person was critically injured, and seven others hospitalized. The youngest victim was 11, according to prosecutors.
Responding police officers say they found Hyden on the ground next to the driver’s-side door, wearing pants but no shirt or shoes. He had bloodshot eyes, was stumbling and there was “a strong odor of an alcoholic beverage on his breath.”
“I hope we get justice”
Photos provided
On Friday, Family members of the victims returned to the scene, some breaking down in tears.
“I hope we get justice for my brother and my mother,” Diamond Pinkney said. “Herman, I love you. I’m going to do you proud.”
“We’re all devastated with this. It breaks my heart, and I’m so sad about it,” neighbor Nereida Garcia said.