Reverse mortgage loans offer a unique opportunity for eligible homeowners to tap into the equity in their homes without the need to make monthly payments. With a reverse mortgage, individuals aged 62 or older can leverage the equity in their homes to pay off or refinance their current mortgage, or purchase a new home. The amount that can be borrowed is based on several factors, including the value of the home, the borrower’s age, and the interest rate at the time of borrowing. Unlike traditional loans, repayment of the loan is only required when the borrower no longer occupies the property as their primary residence or if they pass away. Eligible non-borrowing spouses can even continue living in the home and accessing benefits as long as they meet their specific loan’s obligations, such as property maintenance, taxes or related expenses.
A Reverse Mortgage allows you to eliminate your current monthly mortgage payment so long as you reside in the home as your primary residence and maintain the home’s taxes, insurance(s), HOA fees (if applicable) and upkeep.
Use a HECM line of credit to supplement income or hedge against an uncertain economic future. Cash can be drawn without fear of triggering traditional monthly payments. Access unused principal over time and give yourself greater financial flexibility using your home’s equity.
The amount of equity available with a Reverse Mortgage is based on the age of the youngest borrower, the interest rate, lending limit and the property’s value. How much of that equity that is available as cash to your parents will depend on their unique situation. Contact a PRMG Reverse Mortgage specialist today to go over your parent’s unique situation and get important information to help your family make an educated decision on if a Reverse Mortgage is right for you.
When it comes to reverse mortgage loans, there is no one-size-fits-all solution. There are actually a wide variety of options to choose from, each with their own unique benefits. Reverse Mortgages (HECM) are federally backed loans suitable for homeowners who want to tap into their current home’s equity to benefit their finances during their retirement. Home Equity Conversion Mortgages for Purchase (HECM for Purchase) are government-insured loans with flexible disbursement options used to purchase a new home using the borrower’s current home’s equity. Jumbo Reverse Mortgages are ideal for high-value homes and provide access to more significant loan amounts than other options. Whether you need funds for home improvements, medical expenses, or day-to-day expenses, there is a reverse mortgage option that fits your needs. Check out all the different types to determine which one is right for you, and discover how a Reverse Mortgage can help improve your financial stability during retirement.
Reverse Mortgage Loans (HECM)
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HECM for Purchase Loans
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Jumbo Reverse Mortgage Loans
For Homes Above FHA Limits
A jumbo reverse mortgage is a type of loan designed for homes that exceed the FHA’s 2023 loan limit of $1,089,300. Jumbo reverse mortgages may be a good fit for those that want to access a larger portion of their home’s equity than what other reverse mortgages allow.
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