Why a reverse mortgage could be worth it for seniors this March
While recent news showing inflation dropping, unemployment declining and stock market performance roaring are all encouraging for Americans, the reality is that the economic troubles of recent years will take an extended period of time to subside. And time is not something many seniors have to exploit, considering their career prospects and dwindling retirement savings and limited Social Security benefits. For these older adults, making financial ends meet isn't just an idealistic preference; it's something that will need to be done to avoid making harsher, perhaps irreversible financial decisions in the not-too-distant future.
Fortunately, homeowners have a viable way to regain their financial independence by leveraging the roof over their heads. With a reverse mortgage, specifically, homeowners age 62 and older can borrow from their home equity via a line of credit, a lump sum of money or even via monthly payments. And they'll only need to repay it in the event of death or if the home in question is sold. So, this could be a smart way for senior homeowners to access a large sum of money now.
With home equity levels hitting a record high in 2025, it could also be their most plentiful resource. This March, especially, can be a smart time to consider a reverse mortgage. Below, we'll detail three reasons why.
Check your reverse mortgage eligibility here now.
Why a reverse mortgage could be worth it for seniors this March
A reverse mortgage won't be the right financial fix for every senior, but for many others it can be, as soon as this March. Here's why:
Credit card debt is rising (and interest is compounding)
A report released earlier this month from the Federal Reserve of New York illustrated something that many senior homeowners unfortunately already know all too well – credit card debt is rising. In the final quarter of 2025, cumulative credit card debt in the United States increased by $44 billion. Add in the fact that the average credit card interest rate sits over 20% currently and that interest is compounding daily on balances that were not paid before the grace period concluded, and it's clear that this is an issue that needs to be dealt with promptly, especially for seniors with scarce financial resources.
A reverse mortgage can easily pay off all or most of these homeowners' credit card balances, freeing up money that was otherwise relegated to making minimum payments each month. And that could be the difference between living your golden years debt-free or being saddled with never-ending credit card bills.
See how much you could borrow with a reverse mortgage here.
Interest rate relief is delayed (and will be gradual if issued)
Only around 2%. That's the likelihood of a Federal Reserve interest rate cut at the central bank's next meeting in March, according to the CME Group's FedWatch tool. No rate cut then will translate to maintaining the status quo for those saddled with high-interest-rate debt right now. And even if a cut is ultimately issued later in 2026, it will likely be by a small amount, unlikely to have any material impact on credit card rates, for example. Waiting, then, for external rate relief is not only not a good idea right now, but it's not necessary for many homeowners who can otherwise leverage their home equity to become debt-free via a reverse mortgage.
Cash-out refinancing isn't as advantageous as it once was
A reverse mortgage isn't the only way in which homeowners can borrow from their home equity. Cash-out refinancing has often been a popular alternative. This involves taking out a new, larger mortgage loan to pay off the original, smaller one. The difference between the two is then kept as cash for the homeowner to utilize.
The issue with this strategy this March, and in the current economic climate overall, is that it will require the exchanging of the homeowner's current, presumably low mortgage interest rate for one of today's average ones in the high 5% to low 6% range. And that can be more problematic than it's worth. Fortunately, a reverse mortgage alternative will allow you to keep your existing mortgage term, rate and condition intact while still providing a robust funding stream.
The bottom line
This March could be a better time than usual for senior homeowners in need of extra money to pursue a reverse mortgage. With credit card debt rising, interest compounding, interest rate relief delayed and cash-out refinancing not the affordable alternative it once was, a reverse mortgage offers homeowners a credible way to regain their financial security now. Consider speaking with a lender directly, who can answer your questions and better help you determine your next steps.
