Stay In The Home You Love
Many retirees have significant equity in their home but want to remain where they're comfortable.
Reverse mortgages
Exploring Your Options Later in Life
For many homeowners, a home is their largest asset. A reverse mortgage can be one way to access a portion of that equity while continuing to live in your home. For some families, it can create greater financial flexibility and peace of mind. For others, it may not be the right fit.
The key is understanding your options before making a decision.
That's where Julie can help.
What Is A Reverse Mortgage?
A reverse mortgage allows eligible homeowners to convert a portion of their home's equity into available funds while continuing to live in the home.
Every situation is different, which is why it's important to understand how a reverse mortgage fits into your overall financial goals.
The FHA-insured Home Equity Conversion Mortgage, or HECM, is the most common type. HECM borrowers must be at least 62, meet financial and property requirements, and complete counseling with a HUD-approved HECM counselor. Other reverse-mortgage products may have different terms.
With a HECM, you don’t have to make monthly principal and interest payments. You still need to pay property taxes and required insurance, keep the home in good repair, and live there as your primary residence. Interest and fees added to the loan increase the balance over time.
Julie's goal isn't to sell you a reverse mortgage. It's to help you understand your choices, answer your questions, and determine what makes the most sense for you and your family.
CFPB: How a reverse mortgage worksWhy Homeowners Consider Reverse Mortgages
Create Additional Cash Flow
A reverse mortgage may help supplement retirement income and provide greater financial flexibility.
Eliminate An Existing Mortgage Payment
For some homeowners, paying off an existing mortgage can improve monthly cash flow.
Property taxes, insurance, upkeep, and occupancy obligations continue. The existing mortgage must be paid off at closing.
Access Home Equity
Funds may be used for travel, healthcare expenses, home improvements, family support, or other financial goals.
Buy a Home With a Reverse Mortgage
Many people are surprised to learn that a reverse mortgage can be used to purchase a new home, not just access equity in a home they already own.
For some homeowners, this can be a smart way to downsize, move closer to family, find a home that better fits their lifestyle, or reduce monthly expenses in retirement.
You must contribute funds to cover the difference between the HECM proceeds and the purchase price plus closing costs. The required amount depends on your situation. Taxes, insurance, upkeep, and occupancy obligations continue.
Like any mortgage, it's important to understand both the benefits and tradeoffs. Julie can help you explore your options, review the numbers, and determine whether a reverse mortgage purchase supports your goals.
The goal isn't just finding a new home. It's finding a housing solution that supports the life you want to live.
Schedule a ConversationCommon Misconceptions
“The bank takes my house.”
You retain title to your home with a HECM. The home secures the debt, so failing to meet loan obligations can lead to foreclosure.
“My family will be stuck with the debt.”
HECMs have non-recourse protections. Repayment and the options for keeping or selling the home still need careful review with your family. Do not assume every reverse-mortgage product has the same protections.
“A Reverse Mortgage Is A Last Resort”
For some homeowners it may be a financial necessity. For others it can be part of a broader retirement strategy.
The important thing is understanding whether it makes sense for your situation.
Important Questions To Consider
Before considering a reverse mortgage, Julie encourages homeowners to ask a few important questions:
What Is My Goal?
What problem are you trying to solve?
What Other Options Exist?
A reverse mortgage is one solution, but it isn't the only solution.
How Will This Impact My Long-Term Plans?
It's important to consider future housing needs, financial goals, and family considerations.
Do I Fully Understand The Tradeoffs?
Every mortgage has advantages and disadvantages. Understanding both is essential before moving forward.
HECM responsibilities and tradeoffs
Can I meet the ongoing costs?
You must pay property taxes and required insurance, keep the home in good repair, and meet principal-residence requirements. A HECM does not remove these expenses. Not meeting the obligations can put the home at risk.
What happens to my equity?
Interest and fees added to the loan increase the balance over time. Review upfront and ongoing costs and what may remain for a future move or your estate.
When will the loan need repayment?
A sale, permanent move, or death can trigger repayment, subject to protections for co-borrowers or eligible non-borrowing spouses. Discuss future care and the options available to your family.
What alternatives fit my goals?
Compare keeping your current mortgage, downsizing, or other financing where appropriate. Consider your expected time in the home and the funds you want available later.
Is A Reverse Mortgage Right For You?
Sometimes the answer is yes.
Sometimes the answer is no.
And sometimes there may be a better option.
Julie's goal isn't to sell you a reverse mortgage. It's to help you understand your choices, answer your questions, and determine what makes the most sense for you and your family.
Required HECM counseling helps you review the loan and alternatives. Include family members or trusted advisers in your planning if you wish, and talk through how a spouse or other household member would be affected.
CFPB: Your responsibilities as a HECM borrowerNo pressure. Just honest guidance.
Let's Have A Conversation
If you're curious about reverse mortgages for your current home or looking at purchasing a new one, or wondering whether a reverse mortgage could support your retirement goals, let's talk. We'll review your situation, discuss the pros and cons, and help you understand your options.