Information Courtesy of Jennifer Blau
Loan Officer with NEXA Lending
Reverse Mortgage Myth:
You Give Up Ownership of Your Home
This is FALSE.
What Today's Homeowners Need to Know
Reverse mortgages have changed significantly over the years, yet many homeowners still have outdated information about how they work. The reality is that today's Home Equity Conversion Mortgage (HECM) is one of the most highly regulated mortgage programs available and can be a valuable financial tool for eligible homeowners age 62 and older.
With a HECM, you remain the owner of your home. You can sell the property, refinance the loan, or pay off the balance at any time.
A HECM is also an FHA-insured, non-recourse loan. This means neither you nor your heirs will ever owe more than the home's value when the loan becomes due. The home itself is the only collateral for the loan.
A Different Way to Buy Your Next Home
Many retirees prefer to pay cash for a new home because they want to avoid a monthly mortgage payment. While that can be a good option, it isn't the only one.
A HECM for Purchase allows eligible buyers age 62 and older to purchase a home using a substantial down payment while eliminating a required monthly mortgage payment.*
This can create flexibility in two important ways:
- You may be able to purchase a more expensive home using the same amount of cash you planned to invest.
- Or, you may be able to purchase the same home while keeping more of your savings available for travel, healthcare expenses, home improvements, emergencies, or other retirement goals.
For many retirees, maintaining access to their assets can be just as important as owning their home free and clear.
Making a Move Easier
Many homeowners have built significant equity over the years but hesitate to move because they don't want to take on a new mortgage payment.
A HECM for Purchase can help eligible homeowners sell their current home and move into one that better fits their lifestyle —whether that's downsizing, moving closer to family, relocating to a retirement community, or finding a home that's easier to maintain—all without a required monthly mortgage payment.*
Is a Reverse Mortgage Right for You?
A reverse mortgage isn't the right solution for everyone, but it can be a powerful option for homeowners who want more flexibility in retirement.
The key is understanding all of your options before making a decision. For some homeowners, a HECM can help preserve retirement assets, improve cash flow, and make a desired move possible.
Every homeowner's situation is unique. If you'd like to explore whether a reverse mortgage could help you achieve your retirement or housing goals, give me a call. I'll be happy to introduce you to Jennifer Blau, my preferred mortgage lending partner, who specializes in helping homeowners understand all of their financing options, with no obligation.
*Borrowers must continue to pay property taxes, homeowners insurance, HOA dues (if applicable), and maintain the home. Eligibility requirements apply.
Jennifer Blau
704-953-3561
NMLS#2568819 (CA, NC, SC, OR)
jblau@NEXAlending.com
www.loanswithJenBlau.com
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