Put Cash in Your Pocket with a Reverse Mortgage


Finding the money to cover your daily expenses can a challenge. Food, gas, and bills only seem to be getting more and more expensive as the months go by. It can be a hardship for many families, especially older retired, or semi-retired people. Sometimes unexpected costs can cause your expenses to skyrocket as well. We all know how much healthcare can cost these days, not to mention things like car accidents, college funds, etc. Many people are forced to scrape by not knowing that they have a potential goldmine of wealth already at their fingertips. No, I am not talking about selling your kidneys, so you can put the scalpel and ice chest back where you found them. I am talking about Reverse Mortgages.

How They Work

Reverse mortgages, also known as the Home Equity Conversion Mortgage (HECM) can seem complicated at first, but once you understand how they work, they begin to make a lot more sense. To put it simply, reverse mortgages take the equity that has accumulated in your home and lets you use that as a stipend, with the bank or lender you borrowed from paying you back. When you buy a house you generally find a lender (a bank or some other loan agency) to loan you the money. As you make your monthly payments, you build equity on the house. Equity is just the appraised value of your property, minus the difference between your equity and remaining mortgage debt. Reverse mortgages allow you to cash in on that equity value, built over time, by having an agency pay you back for it.  Most agencies that offer reverse mortgages will set the maximum loan value as a certain percentage of how much the house is appraised for. You can see more here at All Reverse Mortgage, Inc. for some of the typical rates and great deals available for people searching for a reverse mortgage.

Perhaps the best part about reverse mortgages is that there are no monthly payments. You receive a bill detailing the interest built over time on the loans, but no money is due until the homeowner moves out, or is deceased. You can take payments over time, in a lump sum or as a line of credit. Reverse mortgages are extremely flexible, allowing you to use the money for any reason. In fact, many people use reverse mortgages to pay of the remaining mortgage on their homes. The loans have been insured by the Federal Housing Administration (FHA) since 1988. For more information, there are plenty of websites that have a comprehensive coverage of the practice.

Pros of a Reverse Mortgage

So how do you know if a reverse mortgage is right for you? While they may not work for all homeowners, depending on the circumstances they can be the perfect fit of others.

Let’s take a look at the pros and cons for reverse mortgages. Not only can they add stability to your retirement income for people over 62 and you can even live in the home and retain the title. This means you can keep living the lifestyle of your dreams! Additionally, the payments are extremely flexible and after the loan is repaid the remaining equity goes down to your family members. Best part of all is that there are no monthly mortgage payments!

How to Apply

The basics for applying are simple and most people can qualify quickly and easily! You just need to be 62 years on and the home needs to be your principal residence. If you own the home outright and are done with your mortgage then a reverse mortgage is a surefire alternative for you! After that, just make sure you have the money to pay property taxes and maintenance and meet with an HUD-approved counselor.

If you meet the criteria above, you may well be eligible to obtain a reverse mortgage. Meeting with a HUD-approved counselor will give you the guidance you need in finding the right financial solutions for you and your home. After all that is said and done, you will be well on your way to the retirement of your dreams!

Wrap Up

HECMs or reverse mortgages can be the perfect solution for people looking to pay off the remainder of the mortgage, supplement their retirement income, or pay for an unexpected expense. If you are eligible to receive a reverse mortgage, it can be a no brainer way to turn the equity you have in your house into cash.


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