The homeowner keeps all the equity remaining in the home.

Conservative lending practices allow homeowners to take a maximum of 55% (33% on average) of the home’s appraised value. In fact, 99% of people who have a reverse mortgage have equity remaining in the home when the loan is repaid.

The equity remaining depends on the amount borrowed, the value of the home, and the amount of time that’s passed since the reverse mortgage was taken out.

No. The homeowner retains title and maintains ownership of the home. As long as property taxes and insurance are in good standing, the property remains in good condition, and the homeowner is living in the home, the loan won’t be called even if the house decreases in value. Reverse mortgages provide peace-of-mind that the homeowner can stay in their home as long as they’d like.

Many of our clients use a reverse mortgage to pay off their existing mortgage and debts, freeing up cash flow for other things.

No. Many financial professionals recommend a reverse mortgage because it’s a great way to provide financial flexibility. Since it’s tax-free money, it allows retirement savings to last longer and provides a low-risk alternative to selling and downsizing or taking out a conventional mortgage or a line of credit.

You can choose how you want to receive the money. You have the option of receiving all the money you’re eligible for in one lump sum advance, or you can take some now and more later, or you can receive planned advances over a set period of time.

There are one time fees to arrange a reverse mortgage such as an appraisal fee, fee for independent legal advice as well as our fee for administration, title insurance, and registration.

With the exception of the appraisal fee, these fees are paid for with the funding dollars.