Get Prequalified
Reverse mortgages are designed for homeowners age 62 and older who want to use a portion of their home equity to support their financial goals. Depending on the program, proceeds may be available as a lump sum, monthly payments, a line of credit, or a combination of options.
Bet You Didn't Know There Were So Many Reverse Mortgage Options - Let Me Find The Best One That Suites Your Needs!
Pay Off an Existing Mortgage
Eliminate the required monthly principal and interest payment on an existing mortgage by paying it off with reverse mortgage proceeds.*
Create a Line of Credit
Eligible borrowers may be able to establish a line of credit that can be accessed in the future when funds are needed.
Supplement Retirement Cash Flow
Home equity may provide another financial resource to complement retirement income and savings.
Make Home Improvements
Access equity for repairs, renovations, accessibility improvements, or other needs.
Purchase Your Next Home
A Reverse for Purchase can help an eligible homeowner buy a new primary residence without taking on required monthly principal and interest mortgage payments.
This deserves its own highlighted section because it's one of the biggest misconceptions:
The lender does not take ownership of your home.
You retain title and ownership. The reverse mortgage is a loan secured by the property, just like other mortgages.
The loan generally becomes due when the home is sold, the last eligible borrower permanently leaves the property, or another loan maturity event occurs.
There isn't one reverse mortgage that's right for everyone. The amount available and the best program can depend on factors such as your age, home value, existing mortgage balance, financial situation, and what you want the home equity to accomplish.
I can compare available HECM and proprietary reverse mortgage options and help you understand the advantages, costs, and considerations before you make a decision.
Borrowers must continue to meet the terms of the loan, including occupying the home as required, paying property taxes and homeowners insurance, maintaining the property, and paying applicable property charges. Reverse mortgage program requirements vary.
Access Your Home Equity Without Replacing Your First Mortgage
A reverse second mortgage may allow eligible homeowners to access a portion of their home equity while keeping their existing first mortgage in place.
This can be especially attractive for homeowners who already have a low interest rate on their first mortgage and don't want to refinance or pay it off simply to access additional equity.
With many traditional reverse mortgage transactions, an existing mortgage generally must be paid off as part of the transaction.
A reverse second mortgage is designed to sit behind an eligible existing first mortgage, subject to the specific program's requirements.
This may allow a homeowner to:
Keep an existing first mortgage
Preserve a favorable first-mortgage interest rate
Access a portion of available home equity
Avoid replacing the entire first mortgage solely to obtain additional funds
This distinction is important: a reverse second mortgage does not eliminate the existing first-mortgage payment.
The homeowner must continue making the required payments on the first mortgage and remain responsible for property taxes, homeowners insurance, applicable property charges, and maintaining the home.
A reverse second mortgage allows an eligible homeowner to borrow against a portion of their available home equity while leaving an existing first mortgage in place.
The amount that may be available will depend on the specific program and factors such as:
Home value
Existing first-mortgage balance
Available equity
Homeowner's age and program eligibility
Property type and occupancy
Credit and financial assessment requirements
Other lender and program guidelines
Your first mortgage remains in place under its existing terms. You must continue making the required monthly payments on that loan.
The reverse second mortgage is a separate loan secured by the property in a subordinate lien position.
Depending on the specific program, the reverse second mortgage may be structured so that required monthly principal and interest payments are not required on the reverse second mortgage while the borrower continues to meet the loan requirements.
The loan balance generally increases over time as interest and applicable charges accrue.
The homeowner must continue to meet the requirements of both loans, including making the existing first-mortgage payments as agreed.
The homeowner must also continue to:
Pay property taxes
Maintain required homeowners insurance
Pay applicable HOA or other property charges
Maintain the property
Meet occupancy and other program requirements
For homeowners with substantial equity, a reverse second mortgage may provide another way to access that equity without refinancing an attractive first mortgage.
It may be worth considering if you:
Have a low interest rate on your existing first mortgage
Don't want to refinance your entire mortgage balance at today's rates
Need access to additional home equity
Want to supplement retirement cash flow
Need funds for home improvements or repairs
Want additional financial flexibility for unexpected expenses
Have significant equity but don't want to sell your home
For some homeowners, the biggest advantage may be what they don't have to change.
If you currently have a first mortgage with a favorable interest rate, replacing it with a new loan simply to access equity may not be attractive.
A reverse second mortgage may allow you to preserve that existing first mortgage while accessing additional equity separately, subject to program requirements.
Keeping a low-rate first mortgage doesn't automatically mean a reverse second mortgage is the best choice.
We'll compare:
Existing first-mortgage balance and interest rate
Current monthly mortgage payment
Available home equity
Amount of cash you want to access
Costs and terms of the reverse second
Other available reverse mortgage options
How long you expect to remain in the home
Your overall financial goals
The goal is to determine whether keeping your existing first mortgage provides a meaningful advantage compared with other ways of accessing your home equity.
Both options can provide access to home equity, but they work differently when there is an existing mortgage on the property.
Traditional Reverse Mortgage
An existing mortgage generally must be paid off at closing using proceeds from the new reverse mortgage or other available funds. After closing, the homeowner generally no longer has the previous first-mortgage payment.
Reverse Second Mortgage
An eligible existing first mortgage may remain in place. The homeowner continues making the required payments on that first mortgage while the reverse second provides separate access to a portion of the home's available equity.
A traditional reverse mortgage may make more sense when the goal is to eliminate an existing monthly mortgage payment, provided sufficient proceeds are available to pay off the current loan.
A reverse second mortgage may be worth considering when the homeowner wants to keep an attractive existing first mortgage while accessing additional home equity.
Rather than looking at only one loan, we can compare:
Available proceeds
Existing mortgage payoff
Current first-mortgage rate and payment
Whether the first mortgage remains
Upfront and ongoing costs
Available equity after the transaction
How the loan balance may change over time
Long-term financial goals
Sometimes the value of a reverse second mortgage isn't just the equity you can access—it's the first mortgage you may be able to keep.
A reverse second mortgage may be worth exploring if you have significant home equity, an existing first mortgage you would prefer to keep, and a need or desire to access additional equity.
It may be particularly attractive when your current first mortgage has a low interest rate or favorable terms that you don't want to give up.
Before deciding, we'll look at the complete picture, including:
Your age and program eligibility
Current home value
Existing first-mortgage balance
First-mortgage interest rate and monthly payment
Available home equity
Amount of equity you would like to access
Reverse second mortgage costs and terms
Traditional HECM or proprietary reverse mortgage alternatives
Your plans for remaining in the home
Visit Senior Planning Advisor
A reverse mortgage is sometimes just one part of a much bigger decision.
Through Senior Planning Advisor, Gidget Jackson helps seniors and their families explore options for staying at home, downsizing, selling a home, finding a new home, transitioning to senior living, and coordinating services that can make the next chapter easier.
Senior Planning Advisor can help you explore:
Staying safely and comfortably at home
Downsizing or selling your home
Finding your next home
Assisted living and senior living options
Home care and support services
Moving and transition resources
Reverse mortgages and other senior financing options
Guidance and solutions for your next chapter.
A reverse mortgage can be a powerful financial planning tool, but it isn't the right solution for everyone. The best place to start is by looking at your goals, your home equity, your current mortgage, and how you would like your finances to work during retirement.
I can help you compare HECM and proprietary reverse mortgage options, explain how each program works, and review the potential costs and benefits so you can make an informed decision.
Whether your goal is to stay in your current home, eliminate an existing mortgage payment, create a line of credit, access additional cash flow, or purchase your next home, let's see what options may be available.
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Reverse mortgage borrowers remain responsible for property taxes, homeowners insurance, applicable property charges, and maintaining the home. Program requirements and available features vary by loan program.
