How Does a Reverse Mortgage Work?

A reverse mortgage converts a portion of your home equity into cash, which you can receive as a lump sum, monthly payments, or a line of credit. The loan is secured by your home, and repayment is deferred until you no longer live in the property. Interest is added to the loan balance over time, meaning the amount owed increases as funds are used. However, you or your heirs will never owe more than the home’s value, as reverse mortgages are non-recourse loans.

Benefits of a Reverse Mortgage

• No Monthly Mortgage Payments – Unlike traditional loans, you won’t have to make monthly mortgage payments, freeing up your finances.
• Flexible Payout Options – Choose between a lump sum, fixed monthly payments, a line of credit, or a combination of these.
• Remain in Your Home – You can continue living in your home without worrying about selling or downsizing.
• Financial Security – Supplement your retirement income, cover medical costs, or manage unexpected expenses with ease.
• Non-Recourse Loan – You or your heirs will never owe more than the market value of your home.

Eligibility Requirements

To qualify for a reverse mortgage, you must meet the following criteria:

• Be at least 62 years old.
• Own your home outright or have significant equity.
• Live in the home as your primary residence.
• Maintain the property and stay current on property taxes and homeowner’s insurance.

Is a Reverse Mortgage Right for You?

A reverse mortgage can be a great option for homeowners looking to improve their financial flexibility in retirement. However, it’s essential to consider your long-term plans, financial goals, and the impact on your estate. If you’re unsure whether a reverse mortgage is right for you, our expert team is here to help. We provide personalized guidance to ensure you make an informed decision that aligns with your needs.

Get Expert Guidance Today

At Andre Gabel Mortgage, we specialize in helping homeowners navigate reverse mortgages with confidence. Whether you’re looking to unlock your home equity or want to explore all available options, we’re here to guide you every step of the way. Contact us today for a free consultation and take the first step toward financial peace of mind.