If you’re 62 or older, you can take out a reverse mortgage to turn the equity you have in your primary residence into a steady stream of income for you in your retirement years. Every year, thousands of senior citizens turn to lenders to open reverse mortgages so they can supplement their retirement income, take bucket list vacations, upgrade their homes, and more!
With a typical mortgage, your lender holds a note for the balance you owe on your home, plus interest. Every month, you pay a monthly mortgage payment to your lender, which consists of both principal and interest payments.
A reverse mortgage is entirely different! Your lender does an appraisal on your home to determine its current market value. They then subtract any principal balance you may still have on your home as well as determines a residual amount of equity for you to maintain. Finally, the lender sends you either a lump-sum payment or sets up monthly payments to pay you back from the equity you already own in your home! With a reverse mortgage, you can keep your home for the rest of your life, so long as it remains to be your primary residence.
While reverse mortgages pay you from the equity in your home, you will pay some upfront costs to open the loan. These include:
There are three types of reverse mortgages available in the US. They are:
You’ve taken the first step to educating yourself about reverse mortgages by reading this page. Now, it’s time to make the next move and get connected with a lender who can explain what you qualify for and how each option you qualify for will work for you.
We’ve made it easy for you to find a qualified, knowledgeable lender for your reverse mortgage. Simply go to our free quote page to get matched with lenders today!