Many older adults are still carrying mortgages and are unable to retire because of the burden of a monthly payment and have to continue working.  But in some situations, they are retired and usually on a "fixed income", which can be a very serious financial threat if they cannot afford it anymore.

Mortgage interest rates are rapidly increasing and most likely will continue to do so for the next quarter of the year.   The Fed is attempting to slow down inflation by increasing the Federal Funds rate which has a direct impact on credit card debt, Equity Lines of Credit, and Adjustable Rate Mortgages.

If a senior has an ARM, they might be unaware their loan is not a Fixed rate and it may be due to adjust and increase the interest rate this year.   And depending on what the margin is on the loan ( that is where the Lender earns their money), it could be a very large jump in the monthly payment.

If it goes up several hundred dollars it could be financially devastating to the borrower if they don't have enough income to pay it plus all other monthly expenses.   Some people might have enough money in savings and investments to weather this shocking increase, but then there is the worry about how long they may have to make the payment, and if they might run out of money.

A reverse loan could be a very good option to consider, because there are no mortgage payments or loan term.   The borrower retains their ownership in their home and the loan is not repaid until the last borrower passes away.  The property will go to the heirs of the borrower's estate, and they have up to one year to repay the loan.

It is a very good solution to a frightening problem if one is facing a substantial increase in their mortgage payment and they don't know what to do but at the time time, financially protect their savings and income from running out.

Putting a reverse loan in place might be an excellent choice.