Why a reverse mortgage makes sense for seniors this September
Timing is everything, and when it comes to making financial decisions, it can be the difference between success and failure. For many seniors and older homeowners, many of whom are tied to limited budgets, the timing surrounding their financial decisions is critical to get right. One wrong investment choice or savings mistake can have especially damaging consequences, so they'll need to be judicious and calculated, especially if they're considering borrowing against their home equity.
With the average home equity level recently hitting a record high, however, this may be the right time to take action. And if you're a homeowner age 62 or older, it can be particularly smart to do so with a reverse mortgage instead of a home equity loan or home equity line of credit (HELOC). Going into September 2025, specifically, there are some timely reasons why a reverse mortgage could make particular sense for seniors now. Below, we'll examine three reasons why this could be the smart move to make in today's evolving financial landscape.
Start by seeing how much you could borrow with a reverse mortgage here.
Why a reverse mortgage makes sense for seniors this September
A reverse mortgage allows seniors to receive monthly payments directly out of their home equity. They will only need to repay that money if they sell the home or in the event of the death of the homeowner. And, this September, there are some particularly timely reasons why this could be worth exploring. Here are three to consider:
There's a lot to borrow from
As mentioned above, the average home equity level recently hit a new record high. According to a report released earlier in August, the average homeowner has around $200,000 worth of borrowable equity to utilize right now. And, if you're a senior homeowner who has already paid off all or most of your mortgage, there's likely significantly more equity to work with. So, if you need a sizable amount of money right now and don't want to have to stress over repayments anytime soon, a reverse mortgage offers a viable alternative worth researching further.
Learn more about your current reverse mortgage options now.
It eliminates concerns over the rate climate
Inflation stayed at the same rate in July after rising in May and June. Interest rates, meanwhile, have remained on pause all year after being cut multiple times in 2024. And they could be cut again in September, assuming inflation remains under control. All of these developments are enough to make even savvy borrowers confused.
However, if you elect to borrow with a reverse mortgage, concerns over the rate climate will be eliminated, as you won't need to worry about monthly repayments or, in the case of a HELOC, a variable rate that's subject to change every few weeks. Instead, you can just focus on the reason you needed the funds to begin with and put worries over an unpredictable rate climate to the side.
It can help you pay down high-rate debt
The average credit card interest rate is around 22% now, just under a recent record high. And the average credit card balance is worth thousands of dollars, with interest frequently compounding at that 22% rate. So, if you find yourself saddled with high-rate debt now, it's understandable. But a reverse mortgage can help you pay it down or even off in full, allowing you to regain the financial independence that may have once seemed so elusive. Just be sure to address the financial habits that caused your debt load to surge in the first place to avoid having to deal with this issue again in the future.
The bottom line
A reverse mortgage is often beneficial for seniors, but it can be especially smart to consider one this September. With the funding source plentiful now, concerns over the rate landscape not applicable and the solution to your high-rate debt available, a reverse mortgage can be particularly helpful for seniors and older homeowners now. Just be sure to carefully consider the terms and conditions before getting started, as you'll only want to borrow equity when the terms are favorable for your unique needs and goals.