🔍 When Is a Reverse Mortgage a Good Idea?

  • You’re 62 or older.
  • You have significant home equity.
  • You plan to stay in your home long-term.
  • You need cash to supplement your income but don’t want to sell your house.

âś… Pros of a Reverse Mortgage

  1. Access to Home Equity Without Selling
    • Converts part of your home equity into tax-free cash while you continue living in the home. Stay in your home and utilize the years of payments you've made, paying down your mortgage. Turn your equity into a tax-free asset, so you can live comfortably throughout your retirement years. You deserve it, you know and your family does too.
  2. No Monthly Mortgage Payments
    • You’re not required to make monthly mortgage payments. Instead, the loan is repaid when you sell the home, move out, or pass away.
  3. Flexibility in Payout
    • Funds can be received as a lump sum, monthly payments, a line of credit, or a combination.
  4. Stay in Your Home
    • You retain ownership and can live in the home as long as you meet basic obligations (owner-occupied property, property taxes, insurance, upkeep).
  5. Non-Recourse Loan
    • You or your heirs will never owe more than the home's value when the loan is due—even if the loan balance exceeds the home’s worth.
  6. Helpful in Retirement Planning
    • Can supplement fixed incomes or delay drawing from retirement accounts, improving your long-term financial security.
  7. Remaining Equity Capture
    • When you or your heirs sell the home, all the remaining equity gets distributed to you or your heirs, minus the normal costs to sell your home.  The Reverse Lender only captures the remaining balance owed to them, there are zero backend fees they will receive.

❌ Cons of a Reverse Mortgage

  1. Reduced Home Equity
    • The loan balance grows over time, which reduces the equity available to you or your heirs.
  2. Home Must Be Maintained
    • Failing to keep up with taxes, insurance, or property maintenance can lead to foreclosure.
  3. Loan Becomes Due if You Move
    • If you move out for more than 12 months (e.g., into assisted living), the loan becomes due. You may sell your home or your heirs can purchase the home.