What is a Reverse Mortgage?

If you are age 62 or older and have built up at least 40-50% equity in your home, a reverse mortgage will allow you to borrow against the equity in your home. Instead of continuing to make mortgage payments, you get paid back the money you already have in it - that's the "reverse" part of it.

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What can a reverse mortgage be used for?

After you receive the tax-free funds from your reverse mortgage, it is up to you to use them however you please. Some retirees choose a reverse mortgage to have peace of mind and others want to improve their quality of life.

Common uses for reverse mortgages (AARP and HUD survey)

  • Healthcare Costs
  • Repay Existing Mortgages
  • Reduce Burden on Children
  • Home Repair & Improvement
  • Pay Property Taxes
  • Daily Expenses
  • Travel or Somthing Special
  • Gifts
  • 67%
  • 55%
  • 50%
  • 50%
  • 38%
  • 29%
  • 14%
  • 3%

The Reverse Mortgage Process

Education - Since this is the education phase, you should involve your friends and family to help you learn as much as you can.