Could a reverse mortgage help you stay in your home?
If you’re 62 or older, a reverse mortgage lets you turn part of your home equity into cash without selling or moving. I’ll explain how it works, what it costs, and whether it actually fits your plans.
Family members are welcome on the call.
How a reverse mortgage works
A reverse mortgage is a loan against your home’s equity. Instead of you paying the lender each month, the loan balance grows over time and is usually repaid when the home is sold.
Who can qualify?
You need to be at least 62, live in the home as your primary residence, and have enough equity. The lender will also look at your income and credit to make sure you can keep up with the home’s ongoing costs.
How do you receive the money?
You can take it as a lump sum, as monthly payments, as a line of credit you draw from when you need it, or a mix. Some people use it to pay off an existing mortgage so they no longer have a monthly mortgage payment.
Can I use one to buy a new home?
Yes. A reverse mortgage for purchase can help you move to a home that fits this stage of life, such as a single-story place closer to family. You put down a larger down payment, and the reverse mortgage covers the rest.
What do I still have to pay?
You still pay property taxes, homeowners insurance and any HOA dues, and you need to keep the home in good repair. If you fall behind on these, the loan can become due.
When does the loan have to be repaid?
The loan comes due when the last borrower sells the home, moves out for good, or passes away. It also comes due if the taxes, insurance or upkeep aren’t kept up.
What does it cost?
There are upfront costs, including closing costs and mortgage insurance, and interest is added to the balance over time. That means the equity left in your home goes down, and I’ll show you the numbers so you can see exactly how.
Questions people ask me most
Will the bank own my house?
No. You keep the title and stay the owner. The lender has a lien on the home, the same as with a regular mortgage.
What happens for my kids?
When the loan comes due, your heirs can sell the home and keep any equity left, or pay off the loan and keep the house. With a federally insured reverse mortgage (HECM), they won’t owe more than the home is worth when it’s sold.
Is it right for everyone?
No, and I’ll tell you if it isn’t right for you. If you plan to move in a few years or want to leave the home free and clear, another option may fit better.
Helping a parent decide?
A lot of my reverse mortgage conversations include adult children, and I’m glad when they do. You’re welcome to join the call, ask the hard questions and see the numbers for yourself.
Before anyone applies, they’ll meet with an independent HUD-approved counselor. That session is required, and it’s a good chance to get a second opinion from someone with nothing to sell.
Get straight answers, with no pressure
We’ll talk through your goals and run the numbers together. If a reverse mortgage isn’t the right fit, I’ll say so and help you look at other options.
Or call me at 310-567-6988
This material has not been reviewed, approved or issued by HUD, FHA or any government agency. Borrower must be at least 62, occupy the home as a primary residence, and remain current on property taxes, homeowners insurance, HOA dues and home maintenance. The loan becomes due when the last borrower no longer lives in the home or fails to meet loan terms. [CONFIRM DISCLOSURE WORDING WITH EMPIRE COMPLIANCE]