The percentage of the oldest boomers (born in 1946) who feel that they are on track to reach their retirement savings goals or have already achieved them.

The percentage of workers age 55 and older who feel that their financial situation is worse than it was two years ago.

Fortunately, a powerful tool exists that may allow retirees to enjoy financial freedom. This tool is called a REVERSE MORTGAGE.


Definition A reverse mortgage is a type of home equity loan for seniors age 62 and older used to turn a portion of their home equity into cash as needed. They were also designed with unique features to make the loan manageable for older Americans on a fixed income. A federally-insured reverse mortgage is called a Home Equity Conversion Mortgage (HECM).

Fact 90% of all reverse mortgages in the U.S. are federally-insured HECM loans.

Where Do Reverse Mortgages Come From?

The History of Reverse Mortgages

How Does A Reverse Mortgage Work?


Traditional Loan

Borrower pays a minimum required payment every month to pay down the loan.


Reverse Mortgage

Repayment of the loan is deferred until all the borrowers and non-borrowing spouses move out of or sell the home, pass away, or do not comply with the loan terms. At that time, the loan, including all the interest and fees, is repaid in full, usually from the sale of the house.

How Do You Qualify?

Basic Requirements Include:

  • Be at least 62 years old
  • Own your own home
  • Live there as your primary residence
  • Have about 50-55% or more equity in your home

How Do Reverse Mortgages Benefit Seniors?

Advantages and Features:

*Borrowers are responsible for paying property taxes, homeowner’s insurance, and for home maintenance.

Is a Reverse Mortgage Safe?

Consumer Safeguards

To provide the highest standard of consumer safety, HUD continuously adds protections to the industry. Some of these safeguards are:

Do Borrowers Have Any Obligations?

Because you are not paying a monthly mortgage payment, these responsibilities must be met in order to avoid foreclosure:

What Do You Use a Reverse Mortgage For?

Reasons for Reverse

You can use your reverse mortgage funds for almost anything. According to a survey by the National Council on Aging, most potential borrowers would like to use their reverse mortgage funds in the following ways:

  • 67% Pay off their bills
  • 33% Increase their income
  • 27% Enhance their quality of life
  • 23% Save for emergencies
  • *Borrowers were allowed to select multiple reasons for their reverse mortgage interest.

Is a Reverse Mortgage Right For You?

Some things to consider:

  • considerPros

    You want to access your home's equity in cash

  • considerPros

    You want to age in the comfort of your home

  • considerPros

    You do not plan to sell your home or move away in the near future

  • considerPros

    You are able to continue paying your property taxes, homeowners insurance, and maintain basic home repairs

  • considerCons

    You plan to leave your home for more than 12 consecutive months

  • considerCons

    You plan to move out of your home

  • considerCons

    You may not want to age in your home.

  • considerCons

    You are not sure you can fulfill all loan obligations including paying homeowners insurance and property taxes.

What do Real Borrowers Think?


We want you to be educated and informed about your financial options in retirement. Call us and speak with an expert that can help you decide if a reverse mortgage loan may be a good fit for you.

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