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  • Seniors Ready for a Reverse Mortgage

    Unlock the Equity in Your Home

     

    Stay in the Place You Love.  Reverse Mortgage Frequently Asked Questions

  • Reverse Mortgage FAQ

    TopicDetails
    What is a Reverse Mortgage? A loan for homeowners aged 62+ that converts home equity into cash or a line of credit. Some loans allow purchasing a new home. No monthly payments are required, and you keep full ownership. The loan is repaid when the home is sold or the last surviving borrower leaves. Homeowners must maintain the home and stay current on taxes and insurance.
    Eligibility
    • Age 62 or older
    • Home must be your primary residence
    • Must meet FHA property standards & flood requirements
    • Eligible property types: single-family, 2-4 units (one occupied), HUD-approved condo
    • New construction requires a Certificate of Occupancy
    • Sufficient home equity required
    Ownership & Loan Amount
    • You retain ownership as long as loan terms are met
    • Can sell your home anytime
    • Loan amount depends on: age of borrower, home value, equity, FHA limits, interest rate, loan product & payment plan
    How Funds Are Received Choose from: lump sum, line of credit, monthly payments, or a combination of these options.
    Impact on Inheritance Remaining equity after loan repayment belongs to you or your estate. Using a reverse mortgage does not automatically reduce your heirs’ inheritance. Family involvement is recommended when deciding.
    Costs
    • Up-front fees: appraisal, origination, closing, mortgage insurance, counseling (if applicable), servicing fee
    • Most costs can be rolled into the loan
    • Interest and insurance premiums accrue over the life of the loan
    • Specialists can provide a detailed cost breakdown
    Repayment No payments are required while home is your primary residence and loan terms are met. Loan repayment occurs when the home is sold or the last surviving borrower leaves.
    Effect on Social Security & Medicare Generally does not affect benefits, but consult a benefits professional for state-specific guidance.

  • Is a Reverse Mortgage Right for You?

    Deciding to take out a reverse mortgage is an important financial decision. It’s not the right choice for everyone, so it’s important to consider your personal situation carefully.

    Consider Your Financial Needs

    • Do you need additional income to support retirement expenses?
    • Will a reverse mortgage help cover healthcare, home improvements, or other essential costs?
    • Are there other options, such as downsizing or a home equity loan, that might better suit your needs?

    Understand the Costs and Implications

    • Reverse mortgages come with fees, interest, and insurance that accrue over time.
    • Borrowing reduces the equity in your home, which may impact your estate or inheritance.
    • Consider how long you plan to remain in your home, as the loan must be repaid when the home is sold or no longer your primary residence.

    Seek Professional Guidance

    • Talk to a Reverse Mortgage Specialist to get a personalized quote.
    • Consult with a financial advisor, attorney, or estate planner to understand long-term impacts.
    • Discuss your plans with family members to ensure everyone understands the decision.

    Making an informed decision ensures a reverse mortgage supports your retirement goals without creating unexpected financial consequences.

  • Not Ready to Apply? Want to Know More? No Obligation

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