The realities of the rising cost of consumer goods is a problem for any American who is shopping for groceries, filling their tank or looking for a new refrigerator. But for seniors living on a fixed income, high inflation can be a detriment to their overall retirement plans. According to a survey from Allianz Life Insurance Company of North America, one if every four Americans see rising inflation as the single greatest risk to their retirement plans.
In addition to paying higher prices for everyday living expenses, seniors must also contend with increased health care costs including prescription drugs. However, as a counter to this higher cost of living, senior homeowners also possess more wealth in the form of home equity than any other age group.
Programs like reverse mortgages allow those 62 or older to turn that equity in to a form of supplemental income and easing the burdens of high inflation. Reverse mortgages allow borrowers to retain full homeownership rights while eliminating monthly mortgage payments and providing a reliable stream of income.
Today, conventional conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.