Reverse Mortgages for Greater Financial Freedom in Retirement

A reverse mortgage is a loan available to homeowners generally age 62 and older that allows them to convert a portion of their home equity into cash without selling the home and without making monthly mortgage payments.

How It Works

Instead of making payments to a lender, the lender makes funds available to you. The loan balance grows over time as interest and fees accrue, and it becomes due when the last borrower permanently leaves the home, sells it, or passes away.

How You Can Receive Funds

Funds may be taken as a lump sum, fixed monthly payments, a line of credit you draw from as needed, or a combination of these options depending on the program you qualify for.

What You Remain Responsible For

You continue to own your home and remain responsible for property taxes, homeowners insurance, any applicable HOA dues, and maintaining the property. Meeting those obligations keeps the loan in good standing.

Is It Right for You?

Most federally insured reverse mortgages require independent HUD-approved counseling before you apply, which is designed to make sure you understand the costs and alternatives. We are happy to review your situation and explain your options clearly.

Reverse mortgages are among the most misunderstood loan programs in the mortgage industry. Here are the facts behind the most common myths.

Myth: The Bank Takes Your Home

Fact: you remain the owner and stay on title. The loan is repaid when the home is sold or the last borrower permanently leaves the home.

Myth: You Could Owe More Than the Home Is Worth

Fact: federally insured Home Equity Conversion Mortgages are non-recourse loans. Neither you nor your heirs owe more than the home's value at the time the loan is repaid.

Myth: Your Heirs Are Left With Nothing

Fact: any remaining equity after the loan is repaid belongs to your heirs, and they can choose to sell the home or refinance the balance to keep it.

Myth: You Have to Own the Home Free and Clear

Fact: many borrowers still have an existing mortgage. Reverse mortgage proceeds are commonly used to pay that mortgage off, which eliminates the monthly payment.

Myth: It Is a Last Resort

Fact: many homeowners use a reverse mortgage as part of a planned retirement strategy for supplemental income, a standby line of credit, or added flexibility.

One of the most common questions homeowners ask is what a reverse mortgage means for their family. The answer is more flexible than most people expect.

The Loan Becomes Due, Not Automatic

When the last borrower permanently leaves the home, the loan becomes due and payable. The home is not automatically taken by the lender, and heirs are given time to decide how they want to proceed.

Options Available to Heirs

Heirs may sell the home and keep any remaining equity after the loan is repaid, refinance the balance into a traditional mortgage to keep the property, or pay the balance from other assets.

Non-Recourse Protection

Because federally insured reverse mortgages are non-recourse loans, heirs are never personally responsible for more than the home's value at the time of repayment.

Planning Ahead

Talking with your family early, and reviewing the numbers together with a licensed mortgage professional and your own tax or legal advisor, keeps everyone informed and confident about the plan.

A reverse mortgage can be a valuable retirement tool, but it is not the right fit for everyone. Weighing a few key factors helps clarify the decision.

Basic Requirements

Borrowers are generally age 62 or older, must occupy the home as their primary residence, need sufficient equity, and must complete HUD-approved counseling for federally insured programs. A financial assessment confirms your ability to keep up with taxes, insurance, and upkeep.

When It Tends to Make Sense

It often fits homeowners who plan to stay in the home long term and want to eliminate a mortgage payment, supplement retirement income, establish a standby line of credit, or cover unexpected expenses without selling.

What to Consider Carefully

The loan balance grows over time, closing costs and mortgage insurance apply, and less equity remains for the future. If you plan to move within a few years, other options may serve you better.

Next Step

The clearest way to decide is to see real numbers for your home and situation. Our reverse mortgage specialists will walk you through the details with no obligation.