One of the negatives of our Federal Reserve’s policy to expand our money supply and keep interest rates down is that seniors who have lived frugally and built up savings over the years, have not had an adequate return on those investments. There is, however, good news. With lower interest rates, Alabama reverse mortgage borrowers can receive more money from a reverse mortgage than they would in a higher interest rate environment.
Many seniors and their financial advisors have come to realize that home equity is as much a retirement planning tool as financial assets are. To offset the loss of income from retirement portfolios, reverse mortgages are increasingly being recognized as an effective and reliable way to help seniors fund their longevity.