A reverse mortgage is a mortgage loan that is designed for Seniors who own a home, and it allows the senior to access their home equity to improve their retirement. The most common is the HECM government approved reverse mortgage, and it allows you to access money in 1 of 4 ways: a lump sum at closing, a monthly distribution, a line of credit or a combination of the 3. The program is very flexible and has changed the lives of so many seniors, and you maintain 100% ownership in your home and just as a traditional mortgage, and your estate receives all proceeds when and if you sell your home in the future.
The reverse is a very powerful financial tool helping all sorts of seniors, from the little woman in a tiny delipidated home to multi-million dollar clients in the Keys and everywhere between, and that is the beauty of this great financial product designed specifically to make the lives of seniors better. Just like other estate planning tools, the reverse mortgage is just another tool to either compliment a well-diversified retirement plan, or just a simple tool to increase your monthly income, make some repairs to your home, payoff outstanding bills, and possibly provide you with a line of credit possibly to help with future vacations or other needs.
I have been a mortgage banker for the past 30 years and have offered reverse mortgages for the past 20 years. Although I offer all types of mortgages, the reverse mortgage is my favorite mortgage program and also my specialty, as we simply change the lives of so many clients with this truly amazing government backed mortgage. In 2017 the government implemented many changes to the HECM reverse mortgage program, and those changes have improved the HECM Reverse mortgage dramatically as can be seen by the many financial articles like the Wall Street Journal, Forbes and many more now endorsing the program as a great way to improve a seniors retirement.