A Reverse Mortgage, also called a HECM loan (Home Equity Conversion Mortgage) is a government insured home loan that allows you to convert a portion of the equity in your home into cash, monthly income, or a line of credit. You built equity into your home over the years of paying your monthly mortgage payment, but with a Reverse Mortgage you’ll no longer make the monthly mortgage payment, rather you will receive the funds from your built-up equity.
These are also Reverse Mortgage options for those looking to a buy a home with a Reverse Mortgage.
Who is a Reverse Mortgage for?
The Reverse Mortgage is designed for seniors (62 years of age or older) that wish to leverage the equity in their primary residence to pay for life’s luxuries, supplement their income, pay for medical bills and expenses, and more.
Benefits of Reverse Mortgages:
- Access to years of built-up equity
- Eliminate your mortgage payment
- Pay off your high interest credit card debt
- Have funds to comfortably pay your property taxes and insurance
- Have funds to cover living expenses, medical bills, purchase life insurance, and more!
- Spend retirement in a comfortable lifestyle
How can I use my equity with a Reverse Mortgage?
You have choices on how to receive the funds from your built-up equity:
- Lump Sum – a lump sum amount of cash when the loan closes
- Tenure Payments – fixed payment amounts as long as you live in the home
- Term Payments – a specific amount paid monthly for a fixed number of years
- Line of Credit – you have the ability to draw on your equity in any amount until the line of credit is exhausted
How can I use the funds I receive from a Reverse Mortgage?
You can use the funds to help you meet your needs, such as to make home improvements, pay off medical expenses, supplement your monthly income, or use it to pay any unexpected expenses.
We’re here to help you! As Reverse Mortgage specialists, we want to learn more about your home financing goals to come up with strategies and solutions to help you reach them. If you’d like to learn more about Reverse Mortgages, read all about the Reverse Mortgage FAQs, and then give us a call!