Reverse Mortgage: Unlock the Power of Your Home Equity

 

 

 

A flexible option designed to support your retirement goals—without giving up ownership of your home.

 

 

 

 

What Is a Reverse Mortgage?

 

 

A reverse mortgage allows homeowners aged 62 or older to convert a portion of their home equity into tax-free cash—without making monthly mortgage payments.

 

Unlike a traditional mortgage, the homeowner doesn’t pay the lender. Instead, the lender pays the homeowner. The loan is repaid when the home is sold, the borrower moves out, or passes away.

 

 You remain the owner of your home. The bank does not take it.

 

 

 

Common Myths—Busted

 

 “The bank takes your home.”

 

 

 False – You always retain ownership of your home, as long as you keep up with property taxes, insurance, and home maintenance.

 

 

 “Your kids can’t inherit the house.”

 

 

 False – Your heirs can still inherit the home. When the loan becomes due, they can:

 

• Refinance or pay off the balance and keep the home

• Sell the home, repay the loan, and keep the remaining proceeds

• Or walk away and deed the home to the lender

 

 

 

 “You can be kicked out for not making payments.”

 

 

 False – Reverse mortgages are designed to help seniors stay in their homes. Since you receive money (instead of making payments), there’s no risk of eviction due to non-payment. You are responsible only for taxes, insurance, and upkeep.

 

 

 “Reverse mortgages are only for desperate people.”

 

 

 False – This is a flexible financial tool used by many retirees to:

 

• Pay off existing mortgages

• Delay Social Security benefits

• Access a line of credit for emergencies

• Improve monthly cash flow

 

 

 

 

Benefits of a Reverse Mortgage

 

 

 Stay in your home

 Eliminate monthly mortgage payments

 Access tax-free cash

 Maintain full ownership

 Flexible use of funds

 Heirs inherit your home and any remaining equity

 

 

 

How It Affects Your Benefits

 

 

Government programs like Social Security and Medicare are not affected by a reverse mortgage. However, if you rely on Medicaid or other need-based programs, you’ll want to monitor how much you draw from the loan monthly to stay within eligibility limits.

 

 

 

What About Costs?

 

 

Reverse mortgages do not require large out-of-pocket expenses. While there are loan origination and FHA insurance costs, these are often rolled into the loan. There’s usually little to no upfront cost.

 

 Most borrowers pay nothing out of pocket at closing.

 

 

 

Do I Pay Taxes on the Funds?

 

 

No. The proceeds from a reverse mortgage are not considered income, and are not taxable. The money comes from the equity you already own in your home.

 

 

 

Ready to Learn More?

 

 

We’re here to help you understand if a reverse mortgage is the right fit for your retirement needs.

 

 Speak to a licensed loan officer today

Call (817) 909-2939

or Send us a message

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