A reverse mortgage is a loan available to homeowners age 62 and older that allows them to convert home equity into cash—without having to sell their home or make monthly mortgage payments.
No—you retain the title and ownership of your home as long as you continue to live in it as your primary residence, pay your property taxes, homeowner’s insurance, and maintain the home.
No monthly mortgage payments of principal or interest are required. The loan is repaid when you move out, sell the home, or pass away. You are responsible for keeping property taxes up to date and renewing insurances on time
The amount depends on:
Your age
Home value
Current interest rates
The type of reverse mortgage
Older borrowers typically qualify for more funds.
When the borrower passes away, the home is typically sold to repay the loan. Any remaining equity goes to the heirs. If the loan balance exceeds the home value, no debt is passed on to the family—thanks to federal insurance on FHA-backed reverse mortgages.
No. As long as you meet the conditions (live in the home, pay taxes and insurance, maintain the home), the loan cannot be called due—regardless of your age or how long you live.
Reverse mortgages come with closing costs, origination fees, mortgage insurance premiums, and servicing fees. These can often be rolled into the loan, but they are higher than those of traditional mortgages and important to consider.
Yes. You can sell your home at any time. You would repay the reverse mortgage balance from the sale proceeds and keep any remaining equity.
No. Reverse mortgage proceeds do not affect Social Security or Medicare. However, they may affect needs-based programs like Medicaid or SSI, depending on how funds are used or held.
It depends on your financial goals, health, home value, and plans for the future. Reverse mortgages can be a powerful tool for:
Supplementing retirement income
Eliminating existing mortgage payments
Funding long-term care
Aging in place
But they aren’t ideal for everyone, so it’s important to work with a licensed loan officer and certified reverse mortgage counselor.
To obtain a personalized quote, please contact:
Lourdes Cuervo NMLS # 254780
Ph: 305-790-4222
email: LCuervo@cfmtg.com
Certified Mortgage Planning Specialist
Cornerstone First Mortgage LLC.
4500 Biscayne Blvd. # 320
Miami, FL 33137