A reverse mortgage is designed for homeowners age 62 and older and may allow you to access home equity without monthly mortgage payments. Funds can be received as a lump sum, line of credit, or monthly payments. It can help support retirement income, cover expenses, and let you stay in your home with confidence.
A reverse mortgage is a home loan for homeowners age 62 and older that lets you access home equity without monthly mortgage payments. Funds may be received as a lump sum, line of credit, or monthly payments. The loan is typically repaid when you sell the home, move out, or the last borrower passes away.
Homeowners age 62 and older who want to supplement retirement income, reduce monthly expenses, or access home equity without selling their home may benefit from a reverse mortgage. It can be helpful for seniors who plan to stay long term, have significant equity, and want flexible cash options for living costs, medical bills, or home improvements.
A reverse mortgage works by converting part of your home equity into cash while you continue to own and live in your home. Instead of making monthly mortgage payments, interest is added to the loan balance over time. The loan is repaid when you sell the home, move out permanently, or when the last borrower passes away.
The most common reverse mortgage is the HECM, or Home Equity Conversion Mortgage, which is insured by the FHA and offers flexible payout options. Some lenders also offer proprietary reverse mortgages for higher value homes, and single purpose reverse mortgages from local agencies for specific needs like taxes or repairs.
A reverse mortgage may provide tax free cash, eliminate monthly mortgage payments, and help homeowners age 62 and older stay in their home while accessing equity. It can improve cash flow, offer flexible payout options, and give seniors more financial freedom to cover living expenses, medical costs, or home improvements.
A reverse mortgage may be right for you if you are age 62 or older, have significant home equity, and plan to stay in your home long term. It can be a good option if you want to supplement retirement income, reduce monthly expenses, and access equity without selling, but it’s important to consider costs and long term goals.
Jon Shrum, President of KMC Financial and Team Shrum, offers clear, honest guidance for homeowners age 62 and older considering a reverse mortgage. He takes the time to explain how it works, your options, and the long term impact, so you can decide with confidence. With integrity at the core of his approach, Jon helps you access home equity in a way that supports your retirement goals and peace of mind.
A reverse mortgage can help homeowners age 62 and older access home equity without making monthly mortgage payments. These FAQs explain how reverse mortgages work, who may qualify, the benefits, costs, and what to consider when deciding if it fits your retirement and financial plans.
A reverse mortgage is a loan for homeowners age 62 and older that lets you convert part of your home equity into cash. Instead of making monthly payments, the loan balance grows over time and is typically repaid when the home is sold, you move out, or the last borrower passes away.
Funds may be received as a lump sum, a line of credit, monthly payments, or a combination. Many borrowers like the flexibility to choose how and when they access their equity based on their needs.
Yes. You keep title to your home as long as you live in it as your primary residence and continue to pay property taxes, homeowners insurance, and maintain the property.
No monthly mortgage payments are required. You are still responsible for property taxes, insurance, and upkeep. Interest and fees are added to the loan balance over time.
When the last borrower leaves the home permanently or passes away, the loan becomes due. Heirs can sell the home, refinance the balance, or pay it off to keep the property. Any remaining equity belongs to the family.
You cannot be forced to leave as long as you meet the loan obligations, including living in the home as your primary residence and keeping taxes and insurance current. Failure to meet these may put the loan at risk.
Costs may include origination fees, mortgage insurance, closing costs, and interest. Many of these are rolled into the loan balance. A full breakdown helps you understand how the loan affects your equity over time before you decide.
