Reverse Mortgage

Unlock Your Home's Potential

Imagine your home paying you! A Reverse Mortgage transforms your home equity into tax-free cash, freeing you from monthly mortgage payments and providing a flexible income stream for life's next adventure.

Stay comfortably in the home you love, on your terms. This loan offers peace of mind and financial freedom, allowing you to live your retirement dreams without the worry of a monthly mortgage bill.

Why Consider a Reverse Mortgage?

Secure your legacy and enjoy newfound flexibility. Use your funds to travel, cover healthcare costs, assist family, or invest in experiences that truly enrich your golden years, all while retaining ownership of your cherished home.

In-Home Nursing Care

Use your reverse mortgage to pay for in-home nursing care, rather than selling your home to live in a nursing facility.

Traveling

Check off your bucket-list and have the funds to do what you always dreamed of.

Home Repair and Renovation

Fund the repairs and updates you have been imagining on your home.

Fund Living in Your Own Home

Have peace of mind, knowing your home is yours to enjoy.

Myths and Facts

Myth #1: The Bank Takes Ownership of Your Home.

Fact: This is perhaps the most persistent myth. When you get a reverse mortgage, you retain ownership of your home and the title remains in your name. Just like a traditional mortgage, the lender places a lien on the property, but you remain the homeowner. As long as you fulfill the loan terms (like paying property taxes, homeowners insurance, and maintaining the home), you continue to live in and own your home.

Myth #2: You Can Be Kicked Out of Your Home.

Fact: As long as you meet the terms of the loan (which primarily involve living in the home as your primary residence, paying property taxes and homeowners insurance, and maintaining the property), you cannot be forced to move out. The loan only becomes due and payable when the last borrower (or eligible non-borrowing spouse) permanently moves out, sells the home, or passes away.

Myth #3: Your Heirs Won't Inherit Your Home or Will Be Stuck with Your Debt.

Fact: Your heirs absolutely can inherit your home. A reverse mortgage is a non-recourse loan, which is a crucial protection. This means that your heirs will never owe more than the home's value at the time the loan becomes due, regardless of the loan balance.

If the loan balance is less than the home's value, your heirs can sell the home, pay off the loan, and keep the remaining equity. If the loan balance exceeds the home's value, they can choose to pay 95% of the appraised value (i.e. refinance) to keep the home, or simply allow the lender to take possession, with no personal liability for the difference.

Myth #4: Reverse Mortgages Are Only for Desperate People or a "Last Resort."

Fact: While reverse mortgages can certainly help seniors facing financial challenges, they are increasingly being used as a strategic financial planning tool. Many financially savvy seniors use reverse mortgages to:

• Eliminate monthly mortgage payments to improve cash flow.

• Supplement retirement income and preserve other assets.

• Create a growing line of credit for future needs or emergencies.

• Fund home improvements or cover unexpected medical expenses.

Myth #5: You'll Owe More Than Your Home is Worth.

Fact: Thanks to FHA mortgage insurance (which is a standard part of federally insured Home Equity Conversion Mortgages, or HECMs), you and your heirs are protected. If the loan balance grows to be more than the home's value when the loan becomes due, the FHA insurance covers the difference. You will never owe more than the home is worth (or 95% of its appraised value, whichever is less).

Myth #6: Reverse Mortgages Are Too Expensive and Have Hidden Fees.

Fact: Reverse mortgages, like any mortgage, have costs associated with them, including origination fees, closing costs, and mortgage insurance premiums (for HECMs). However, these costs are comparable to traditional mortgages and can often be rolled into the loan amount. Furthermore, the FHA-insured HECM program has specific regulations to ensure transparency and prevent predatory practices. While the interest accrues on the loan, the benefit of no required monthly mortgage payments can significantly free up cash flow for seniors.

By addressing these common myths, we hope to provide a clearer and more accurate understanding of how reverse mortgages work and their potential benefits for eligible seniors.