Have we entered the 2022 Recession?

Normally, a Recession is defined as “two consecutive quarters of declining GDP.” First and second quarters of 2022 were both negative so technically we should be in the 2022 recession but no politician is willing to admit that a recession happened on their watch. So in spite of the evidence the US government and financial leaders continue to downplay the idea that we have entered the 2022 Recession.

Regardless of the designation of Recession or not, most Americans and especially retired Americans are feeling the pain of inflation and it’s getting harder and harder to live and thrive financially.

How would a Reverse Mortgage Help with the 2022 Recession?

Reverse Mortgages are designed to alleviate financial stress and the burden of debt payments. For the vast majority of Americans our largest expense and our largest asset happens to be our homes. Statistically speaking most Americans retire on a fixed income comprised of Social Security Income and sometimes a small pension or 401k. But making ends meat is getting harder and harder on these small fixed incomes. Fortunately most retirees also happen to own their home, in fact nearly 80% of people over 65 are homeowners according to Statista https://www.statista.com/statistics/1036066/homeownership-rate-by-age-usa/#:~:text=The%20homeownership%20rate%20among%20Americans,are%20occupied%20by%20the%20owners. Likewise, high home appreciation has been a heaven send for homeowners who now have substantial amounts of dormant equity in their homes that could be life changing if put to work.

A Reverse Mortgage puts your equity to work.

For most people the primary benefits of a Reverse Mortgage are:

  1. Eliminate a monthly mortgage payment.
  2. Use home equity to consolidate debts.
  3. Establish a Line of Credit with emergency funds.
  4. Access home equity to spend on anything they want, like vacations, kids or cars.

The homeowner continues to pay their property taxes and insurance but by eliminating their monthly mortgage payments these homeowners have much higher levels of freedom and flexibility to enjoy life.

 When is the right time to do a Reverse Mortgage?

At least one homeowner must be 62 or older to do a HECM Reverse Mortgage. I personally recommend taking out a Reverse Mortgage as soon as you’re eligible. Taking out a Reverse early reduces the amount of money you’ll draw from existing assets to pay mortgage payments and that allows you to save more of your income for the future.

So the quick answer to the question of when is, Now. NOW IS THE TIME TO TAKE OUT YOUR REVERSE MORTGAGE! Home values are at their peak and starting to soften. Interest rates have been climbing steadily for the past six months and appear to be going higher. The opportunity and options you have today may not be available in 3 months let alone 3 years which is why my recommendation is don’t wait, take action now.

If you or someone you love is curious about the options with a HECM Reverse Mortgage, give us a call to learn more.

Trevor Carlson

President – Reverse Mortgage Specialist

Heritage Reverse Mortgage




Heritage NMLS #1497455 Trevor’s NMLS #: 267962

1060 South Main Street Bldg. A Suite 101B

St George Utah 84770