why our team loves reverse mortgages
Instead of making monthly mortgage payments to a lender, a reverse mortgage converts part of your home's equity into cash. The lender pays you either through a lump sum, monthly payments, a line of credit, or a combination. The loan is repaid when the homeowner sells the house, moves out permanently, or passes away. It's a smart way to supplement income, especially if you're on a fixed budget.
Reverse Mortgages At A Glance
If you’re 62 or older, a reverse mortgage can help turn the equity in your home into tax-free cash. It’s a powerful option for those looking to boost retirement income, eliminate existing mortgage debt, or reach financial freedom.
Highlights
- No Monthly Mortgage Payments: While you live in your home.
- Access Your Equity: Convert part of your home’s value.
- Stay in Your Home: If it's your primary residence and you meet the loan terms.
- Flexible Payout Options: To fit your situation.
- Federally Insured: Commonly the FHA-insured Home Equity Conversion Mortgage (HECM).
Reverse Mortgage Guidelines
- Age Requirement: At least one borrower must be 62 or older.
- Homeownership: Must live in and own the home as your primary residence.
- Equity Requirement: Typically at least 50% equity is required.
- Property: Single-family homes, FHA-approved condos, and some multi-unit properties.
- Counseling: HUD-approved reverse mortgage counseling is required.
Pros of Reverse Mortgages
- No More Monthly Mortgage Payment: A reverse mortgage pays off your existing home loan.
- Access Equity Without Selling: And use it however you want.
- Options For Payment: You get to choose how you receive your funds (lump sum, monthly disbursement, a line of credit, or a mix).
- Non-Recourse Loan Protection: You (or your heirs) will never owe more than the home is worth when it’s sold to repay the loan.
- Stay in the Home You Love: As long as you keep up with property taxes, insurance, and maintenance.
Best for…
Retirees looking to boost income
Homeowners who want to age in place
Seniors with significant home equity
Those seeking to eliminate monthly mortgage payments
Adults helping parents explore retirement options
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