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Reverse Your Thinking

Retirement Mortgages

A retirement mortgage is designed for your stage in life helping prepare you for retirement while addressing your overall financial goals. It takes advantage of your most powerful asset – YOUR HOME.

SCHEDULE A CONSULTATION

Reverse Your Thinking

Retirement Mortgages

A retirement mortgage is designed for your stage in life helping prepare you for retirement while addressing your overall financial goals. It takes advantage of your most powerful asset – YOUR HOME.

SCHEDULE A CONSULTATION

The Home Equity Conversion Mortgage (HECM)

Reverse Mortgage Insured by the Federal Government

A reverse mortgage may be a safer option than a traditional mortgage or line of credit. Here is why:

  • It allows homeowners to access their equity for any reason without being required to make a monthly payment. 
  • It offers financial planning and retirement investment strategies that are not possible with a traditional mortgage.
  • And provides housing security and financial protection superior to a traditional mortgage.

Read about additional mortgage solutions available to homeowners above the age of 55. 

Browse our video archive for more brief explainer videos about reverse mortgages.

Watch more videos

What Can A Reverse Mortgage Do?

Financial Planning
  • Pay off current mortgage (if applicable)
  • Eliminate monthly payment
  • Increase cash flow
  • Debt consolidation
Access Equity
  • Get a line of credit that is available when needed and that grows over time
  • Home improvement
  • Emergency fund
  • Fund medical and long-term care needs
Build Wealth
  • Purchase a new home
  • Minimize income taxes and allow other investments to grow
  • Retain ownership and future appreciation
  • Fund investments and acquisition of other assets
Asset Protection
  • Housing security
  • Estate planning
  • Protect spouse

A REAL LIFE EXPERIENCE

How a reverse mortgage created a huge benefit for one couple.

Edward and Mary are a retired married couple in their 70s. They own a home worth $400,000 and owe about $100,000 on their mortgage. Their monthly payment runs $1,200. If either Edward or Mary passes on, the surviving spouse is left in a difficult financial situation with lowered Social Security benefits.

The couple decided on a reverse mortgage to get rid of their monthly mortgage payment. It protects Edward and Mary from financial disaster should one of them require long-term care or pass away, and frees up money for the home improvement projects they’ve been wanting to take on.

Reverse Mortgage Myths vs. Facts

Slide

A reverse mortgage is a loan of last resort for desperate people.

FACT

Reverse mortgages have evolved from strictly a needs-based product to a solution that many financial planners recommend as an important component of a comprehensive retirement plan and a retirement income strategy. Among the reasons people use a reverse mortgage are the ability to supplement income and increase monthly cash flow, increase access to liquid assets, extend the life of other financial assets, minimize income taxes, and gain financial flexibility in retirement.

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OTHER MORTGAGE SOLUTIONS

REVERSE PURCHASE MORTGAGE

A reverse mortgage that is used to purchase a home, downsize or upsize, relocate to be closer to family and friends, or to live in a warmer climate.

The benefits of a reverse purchase mortgage are:

  • Improving purchasing power
  • Improving cash flow
  • Allowing for asset diversification
  • Providing a better solution for financial, retirement and estate planning
  • Retaining ownership and 100% of future appreciation

PROPRIETARY REVERSE MORTGAGE

Proprietary reverse mortgages are offered by private lenders and are not guaranteed by the federal government like the Home Equity Conversion Mortgage (HECM).

They are also referred to as jumbo reverse mortgages since the maximum loan amount is 4 million, substantially more than a HECM.

Features of a reverse purchase mortgage are:

  • Larger amounts of money are available when dealing with higher value properties
  • Costs are lower than with an HECM Mortgage
  • The minimum age is 55 versus 62 for the HECM
  • It may be the only option for homeowners who own condominiums

REVERSE SECOND MORTGAGE

An alternative that leaves a low rate first mortgage in place but gives the homeowner access to their equity (cash) without the burden of having to make a monthly payment for the amount borrowed or the burden and cost of refinancing.

The benefits of a reverse second mortgage are:

  • Turns equity into cash
  • Does not require a monthly payment
  • Does not require the homeowner to refinance and does not impact the current mortgage

EQUITY AVAIL MORTGAGE

A new innovative hybrid mortgage for individuals 55 or older. Provides for a lower monthly payment for the first 10 years compared to a traditional mortgage.  After 10 years the mortgage automatically converts to a reverse mortgage and monthly payments are not required for as long as the homeowner lives in the house. 

Features of an equity avail mortgage are:

  • Replaces your current mortgage
  • Lowers monthly payment for 10 years
  • Converts to a reverse mortgage with no monthly payments required after 10 years
  • Offers the potential to take additional cash out

(Not available in every state.)

WHAT OUR CLIENTS SAY

The entire process was timely and complete. The attention to detail was appreciated. Nicely done.” – Marv Achterberg

The reverse mortgage has enabled me to live on my pension without any worries. It has worked out well for me, I would recommend it to anyone in the market these days. – Dave W.