Reverse Mortgage Loans

A reverse mortgage allows eligible homeowners to convert a portion of their home’s equity into cash. Unlike a traditional mortgage, you are not required to make monthly mortgage payments. You continue to live in and own your home while accessing funds that can be used for many retirement-related needs.

Yes. You keep the title to your home with a reverse mortgage. As long as you meet the loan requirements, including paying property taxes, homeowners insurance, HOA fees if applicable, and maintaining the home, ownership remains with you.

No monthly mortgage payments are required. However, you are still responsible for property taxes, insurance, HOA fees if applicable, and basic home maintenance.

Funds can typically be received in several ways, depending on the loan type:

• A lump sum
• Monthly payments
• A line of credit
• A combination of these options

Your mortgage specialist can help you choose the option that best fits your financial goals.

The amount available depends on several factors, including:

• The age of the youngest borrower
• The appraised value of the home
• Current interest rates
• The reverse mortgage product selected

Because these factors vary, speaking with a mortgage specialist is the best way to get an accurate estimate.

If you currently have a mortgage, a reverse mortgage will first pay off the existing loan. Any remaining proceeds can then be accessed based on your chosen payout option. Many borrowers use a reverse mortgage specifically to eliminate required monthly mortgage payments.

A reverse mortgage becomes due when a qualifying event occurs, such as selling the home, permanently moving out, or the passing of the last borrower. At that time, you or your heirs can choose to sell the home, refinance the balance, or pay off the loan using other assets. Any remaining equity belongs to you or your heirs.

Not necessarily. Heirs have options when the loan becomes due. They may sell the home and keep any remaining equity after the loan is repaid, or they may refinance or pay off the balance to keep the home. Reverse mortgages are non-recourse loans, meaning neither you nor your heirs will owe more than the home’s value.

Reverse mortgages include several consumer safeguards:

• Required third-party counseling
• No prepayment penalties
• Non-recourse protection, which limits repayment to the home’s value

These safeguards are designed to help borrowers make informed decisions and protect their financial interests.

A reverse mortgage is not a one-size-fits-all solution. It can be a helpful financial tool for some homeowners, depending on their goals, lifestyle, and long-term plans. That’s why education and conversation are such important parts of the process.

The first step is a conversation. Our team can help you understand how a reverse mortgage works, review your eligibility, and guide you through the application process at your pace.