Reverse Mortgage

A Reverse Mortgage is also known as a Home Equity Conversion Mortgage (HECM). A Reverse Mortgage has been a federally insured program since 1989. For over 25 years the HECM program has given older Americans improved financial security.

In a conventional mortgage, the homeowner makes a monthly payment to the lender. After each payment, the homeowner’s equity increases by the amount of the principal included in the payment. In a reverse mortgage, a homeowner is not required to make monthly payments. If payments are not made, interest is added to the loan’s balance. Although the “rising loan balance can eventually grow to exceed the value of the home, the borrower (or the borrower’s estate) is generally not required to repay any additional loan balance in excess of the value of the home.

The most common reverse mortgage is one in which the owner receives cash or a credit line from an existing home


  • A Reverse Mortgage is a financial tool specifically designed for people 62 and older.
  • A Reverse Mortgage converts a portion of the equity in your home into tax-free cash that can be used for anything.
  • You are never required to make a payment again to your mortgage as long as you live in your home. You will still be responsible for taxes, insurance and the maintenance of the home.
  • A Reverse Mortgage is for people who have a mortgage and for people who own their home free and clear.
  • You can choose to receive your cash in a lump sum, monthly payments, in a line of credit or a combination of these.
  • Repayment is not made until you no longer live in the home.

Call 800-725-9902 to schedule a strategy session with a Home Mortgage Expert