Reverse Mortgages

A reverse mortgage lets eligible older homeowners convert part of their equity into funds while remaining in the home, without a required monthly principal-and-interest payment. The balance grows over time and becomes due when the last borrower leaves the home permanently. It is a significant decision with long-term consequences, and independent counseling is part of the process.

• Older homeowners with substantial equity in a primary residence
• Owners looking to supplement retirement income while staying in the home
• Households weighing this against downsizing or a traditional home-equity option

• No required monthly principal-and-interest payment while program conditions are met
• Funds may be available as a lump sum, a line of credit or scheduled advances, depending on the program
• The borrower retains title to the home

• The loan balance increases over time as interest and fees accrue
• Property taxes, homeowners insurance, any HOA dues and property maintenance remain your responsibility, and falling behind can trigger default
• Equity available to heirs is reduced, and the loan becomes due when the last borrower permanently leaves the home
• Upfront and ongoing costs can be higher than other equity options
• Minimum age and other eligibility requirements apply

These are the factors an underwriter typically reviews. They are not a checklist of requirements, and meeting them does not guarantee eligibility or approval.

• Minimum borrower age as defined by the program
• The home must be your primary residence and an eligible property type
• Sufficient equity, and a financial assessment of your ability to cover taxes, insurance and upkeep
• Completion of independent counseling

• HELOC payment estimator
• Monthly payment estimator