UPDATE: Rates have fallen to an 18-month low, pushing loan amounts higher. If you’ve looked at a reverse mortgage within the last year, and haven’t proceeded due to loan proceeds, you may want to look again.
What is a Debt Consolidation Reverse Mortgage?
During the Federal stimulus response to COVID-19, consumer debt decreased and personal savings rates increased – in the beginning. However, that was temporary. Savings then plummeted and debts are now higher than ever.
For homeowners aged 62 and older, the government-insured HECM (reverse mortgage) is, without a doubt, the most common reverse mortgage product. In fact, the HECM has become increasingly popular among retirees because it offers valuable assistance with cash flow, improves liquidity, supports tax planning, and even helps enhance their net worth. However, the greatest potential may be debt consolidation.