Reverse Mortgage, is it right for me?


 A Reverse Mortgage or Home Equity Conversion Mortgage (HECM), is a Federal Housing Administration (FHA) insured loan that enables you to access a portion of your home’s equity without having to make monthly mortgage payments.

HECM loans are utilized by many seniors needing to increase their monthly cash flow or establish a line of credit as a safety net for unplanned events during retirement.

If you are 62 years of age or older and have sufficient home equity, you may be able to get the cash you need to:

  • Pay off your existing mortgage
  • Continue to live in your home and maintain the title
  • Pay off medical bills, vehicle loans or other debts
  • Improve your monthly cash flow
  • Fund necessary home repairs or renovations
  • Build a “safety net” for unplanned expenses

A reverse mortgage allows you to maintain ownership of your home (retain title) and live in your home as long as you need. You will not be taxed on the loan proceeds until you sell the property.  Although you must continue to pay required property tax and insurance, as well as keep regular home maintenance to FHA standards.

By securing your reverse mortgage with a reputable mortgage company you alleviate any worry that your heirs will be impacted negatively.  Your heirs should never owe more than the balance of the loan or the value of the property, whichever is less; and no assets other than the home are required to be used to pay the debt. The loan is repaid with the proceeds of the sale of your home when the time comes to sell, whether you are moving, or have passed away.


When considering a reverse mortgage or HECM loan there are many questions you must ask yourself to help determine if it might be the right decision for you.  

A reverse mortgage may be just what you’re looking for if you have equity in your home and want to:

  • IMPROVE YOUR MONTHLY CASH FLOW: Having extra money to fund retirement expenses can relieve stress and give you more freedom to live a happier life.
  • STAY IN YOUR HOME & MAINTAIN TITLE: A reverse mortgage allows you to cash out some equity in your home and still maintain ownership. The lender holds a lien on your property, the same as a traditional mortgage.
  • BUILD A SAFETY NET: Are you concerned about the potential of your health declining in the coming years? Creating a financial “safety net” for unplanned medical or basic living expenses can give you peace of mind.
  • RENOVATE YOUR HOME TO FIT YOUR NEEDS: Remodel to help with physical challenges that have made it difficult to get around your house.  You can also use proceeds to make home repairs.
  • PAY OFF DEBTS: Simplify your life by using the proceeds from a reverse mortgage to help you pay off medical bills and credit card balances.

Learn more about Reverse Mortgages in the Ultimate Guide to Reverse Mortgages.

Contact one of our Mortgage Advisors at 800.816.5626 or through our website to answer any of your questions.

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