REVERSE MORTGAGE
Reverse mortgages. Understand the whole picture.
Talk through your goals, ongoing obligations, and alternatives before making a decision.
START WITH UNDERSTANDING
The details matter.
Reverse mortgage products differ. Ask which program is being discussed, how interest and fees affect the balance, when repayment is required, and what protections apply to other people living in the home.
Borrowers have ongoing responsibilities, including property taxes, insurance, and maintenance. Proprietary reverse mortgages are not FHA-insured HECMs; protections and terms differ.
Learn more: Consumer Financial Protection Bureau ↗
Three questions
worth asking.
- What would you like home equity to help you accomplish?
- How long do you expect to live in the home?
- How would the loan affect your household and future plans?
HECM and proprietary loans are different.
A Home Equity Conversion Mortgage (HECM) is federally insured; proprietary reverse mortgages have their own product terms. Ask which program is being discussed and compare eligibility, costs, proceeds, protections and repayment events.
Plan for ongoing responsibilities.
For HECMs, borrowers must maintain the home, keep it as their principal residence and pay required property charges such as taxes and homeowners insurance. Discuss the applicable obligations for any proprietary product separately.
Consider how interest and fees affect your balance and remaining equity over time. Include the people you want involved in decisions about moving, future care and your estate. Ask how a spouse or other resident is treated under the specific loan terms.
Compare alternatives before deciding.
Discuss staying with your current financing, a traditional refinance, a second loan or selling and downsizing. Each has different payment, cost and housing implications.
LET’S LOOK AT YOUR SITUATION
You don’t have to
sort it out alone.
Start with an inquiry, or choose a time to talk with Jay.