Reverse Mortgages

Reverse mortgages offer homeowners aged 62 and older a unique way to tap into their home equity without selling their home or making monthly mortgage payments. At Gate City Mortgage, we help seniors understand if this financial tool aligns with their retirement planning needs.

How Reverse Mortgages Work

A reverse mortgage lets you borrow against your home's equity while retaining ownership and living in your home. Unlike traditional mortgages, you don't make monthly payments. Instead, the loan balance grows over time, and repayment isn't required until you move out, sell the home, or pass away.

Key Benefits

• Eliminate monthly mortgage payments

• Receive funds as a lump sum, monthly payments, or line of credit

• Stay in your home as long as you maintain it and pay property taxes/insurance

• Retain home ownership

• FHA insurance protects you and your heirs

To qualify for a reverse mortgage, you must:

• Be 62 years or older

• Own your home outright or have significant equity

• Use the property as your primary residence

• Maintain the property and stay current on taxes/insurance

• Complete HUD-approved counseling

Eligibility Requirements

Common Uses

Homeowners typically use reverse mortgages to:

• Supplement retirement income

• Pay for healthcare expenses

• Make home improvements

• Pay off existing mortgage

• Create emergency funds

• Cover daily living expenses

Types of Reverse Mortgages

1. Home Equity Conversion Mortgage (HECM)

• Most common type

• FHA-insured

• Higher lending limits

• More flexible disbursement options

2. Proprietary Reverse Mortgages

• Private loans for high-value homes

• Higher lending limits

• Less regulated than HECMs

Important Considerations

Before pursuing a reverse mortgage, consider:

• Impact on inheritance plans

• Ongoing property maintenance costs

• Required property taxes and insurance

• Effect on government benefits

• Future housing plans

Expert Guidance

At Gate City Mortgage, we understand that reverse mortgages are complex financial products. Our licensed mortgage professionals will:

• Explain all costs and terms

• Review alternatives

• Help determine eligibility

• Guide you through the application process

• Coordinate with HUD-approved counselors

Contact Tom Lambert (NMLS #2556933) at 508-951-0734 to discuss whether a reverse mortgage could be right for your retirement planning needs. Our Fall River office serves seniors throughout Massachusetts with personalized guidance on accessing their home equity safely and responsibly.

[Branch NMLS ID: 2563199]