A reverse mortgage, also referred to as a Home Equity Conversion Mortgage (HECM), is a simple financial tool to turn equity in your home into cash that can be used for many different purposes that will enhance and extend your retirement plan.

If you currently have a mortgage, a reverse mortgage could eliminate your monthly payment and access any additional equity to create accessible cash. A HECM mortgage does not require you to make a payment until you pass away or move out of your home. Although you are still required to pay taxes and insurance on your home, you will never be required to make a payment during your lifetime as long as you live in your home.

The Three Basics of Reverse Mortgages

  1. Receive Tax Free Money from Your Home Equity
    1. Turn equity in your home into cash that can be used to enhance and extend your retirement plan
  2. Eliminate Your Monthly Mortgage Payment
    1. Never make a payment during your lifetime as long as you live in your home except for taxes and home insurance
  3. Never Owe More Than What your Home Is Worth
    1. When you move out of your home, sell it, or pass away, neither your estate or heirs are required to pay the deficit if the balance owed on your reverse mortgage exceeds the home value

Reverse Mortgage Eligibility Requirements:

  • One borrower must be at least 62 years or older
  • Purchased home is required to be your primary residence
  • New property must be: single-family home, 2-4 unit dwelling or FHA approved condo
  • Must receive reverse mortgage counseling from a HUD approved counseling agency
  • Must have an adequate down payment for your new home or a gift from a family member

I am a Residential Mortgage Planner with special emphasis and training on Reverse Mortgages. Unlike a traditional loan officer, my role is to help my clients integrate the loan that they select into their overall financial plans to help minimize taxes, improve cash flow and minimize interest expense. I help my clients successfully manage their home equity to increase liquidity, safety and rate of return.

Office: (302) 260- 7088
Direct: (410) 868-0423
Fax: (866) 950-3046
Email: gaila@fairwaymc.com

NMLS# 150812
Mobile App