Unlike a traditional home loan, homeowners with a reverse mortgage don’t have a monthly mortgage payment. Instead, a reverse mortgage allows the homeowner to borrow part of their home’s equity as tax-free income to free up cash flow. Another term for these is HECM, which stands for Home Equity Conversion Mortgage. They are backed by the government and are supervised by the Federal Housing Administration. This means, they are highly regulated, and their terms are very transparent. Typically, the money received through a reverse mortgage is used to supplement retirement income or medical expenses, cover the cost of home repairs, pay for a child’s college education, and more. For homeowners 62 and older who have paid off their mortgage, a reverse mortgage is a useful tool to live life on their terms.
Reverse mortgages have unique qualification requirements. Our team is well-versed in these requirements and the specifics of reverse mortgages and can help you determine if a reverse mortgage is right for you. Call us today to speak with a reverse mortgage expert!Learn More