What is a Reverse Mortgage | Moreira Team Mortgage

What is a reverse mortgage?

A reverse mortgage uses the equity in your home to provide the homeowner with supplemental monthly income. The most common reverse mortgages are HECMs or home equity conversion mortgages. They are FHA insured and intended for homeowners that are 62 years old or older to access a percentage of their home’s equity.

Reverse mortgages are often used in cases where seniors find themselves needing extra monthly income, which can be useful for older retirees. If you outright own your home and think a reverse mortgage might benefit you, we would love the opportunity to help answer any questions you may have.

How does a reverse mortgage work?

  • With a reverse mortgage the lender pays the borrower in monthly increments
  • The loan is paid back when the borrow moves out, sells the home or upon their death
  • Borrowers have to be 62 years old or older and must have little to no mortgage left on their home. The borrower must also not have any major debts
  • We will look at a borrower’s income, if any, credit, assets and current living expenses. All taxes on the property must be paid as well.
  • Most home types qualify, even some manufactured homes. As long as it is the primary residence.
  • The money from a reverse mortgage can be used in any way the borrower wants to use it. This is why so many seniors choose a reverse mortgage option, to help supplement their cost of living.
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