Reverse Mortgage Loans
Unlock the Power of Your Home’s Equity Today
A reverse mortgage is an increasingly popular consumer loan for senior homeowners age 62+. It allows these senior homeowners to tap into the home equity that has been built over many years. There are no monthly mortgage payments required but homeowners are still responsible for paying property taxes, insurance, and maintenance. The repayment of the loan is deferred until the homeowner dies, sells or moves out of the home. If the borrower wishes to make payments of any size, they can. In addition to reducing the loan amount, the same amount, penny for penny will be added to the Line Of Credit (LOC). Because there are no monthly mortgage payments and homeowners can generally receive their home equity as tax-free cash this very popular type of loan has seen over 1,300,000 seniors take advantage of it.
Steady Income.
No payments.
Stay in your home.
What Are Reverse Mortgage Loans?
Reverse mortgages allow seniors over age 62 to tap into the equity you’ve built over the years, providing a reliable source of funds for your retirement needs. This solution offers a way to supplement your income, cover unexpected expenses, or simply enhance your quality of life without the burden of monthly mortgage payments.
Fixed Rate
This HECM option provides the security of a fixed interest rate for the life of the loan. It may be a great option when taking a full draw to pay off a large mortgage or for a new home purchase with a HECM for Purchase. The downside of the fixed version is that the Line Of Credit (LOC) does not apply.
Variable Rate
Similar to traditional ARM’s, your initial interest rate is comprised of a fixed margin and an index that will adjust on either an annual or monthly basis. All variable loans have a lifetime interest rate cap.
The benefit of a viable rate HECM is that it provides the greatest flexibly on how you elect to take your loan proceeds. Variable HECMs allow you to set up ongoing monthly term or tenure payments and/or set up a growing line of credit.
Benefits of a Reverse Mortgage
Access Your Home Equity
Get a lump sum or fixed monthly payments to fund renovations, healthcare, or other major expenses.
Eliminate Monthly Mortgage Payments
Use a reverse mortgage to convert your mortgage payment from required to optional and free up your budget. (Taxes and insurance still apply.)
Create a Financial Safety Net
Establish a growing line of credit for future needs—unused funds grow over time. The Line Of Credit (LOC) is an amazing tool that has many features. Give Mike a call 303-396-2804. You will be amazed.
Buy Your Ideal Retirement Home
Right-size into a new home on a fixed income. It's amazingly easy and may allow you to pocket substantial funds from the sale of the home that no longer fits your senior years.
The Reverse Mortgage Process
1 / Consultation
Discuss your financial needs with a Mad River Mortgage specialist.
2 / Appraisal and Counseling
Determine your home’s value and complete required HUD counseling
3 / Loan Approval
Secure a customized reverse mortgage plan. Financial qualification requires the ability to pay taxes, homeowners insurance, the minimum mo. payments on the credit report, $.14 per sq. ft. plus one penny. Very very simple.
4 / Close and Receive Funds
Start accessing your home equity to meet your financial goals and/or stop making payments on the current mortgage .
Reverse Mortgage FAQs
What is a reverse mortgage and how does it work?
A reverse mortgage is a loan available to homeowners aged 62 and older that allows them to access the equity in their home without making monthly mortgage payments. The most common type, the Home Equity Conversion Mortgage (HECM), is insured by the FHA. The loan is repaid when the borrower moves out of the home or passes away, typically through the sale of the property.
How can a reverse mortgage help me in retirement?
A reverse mortgage can:
• Provide a lump sum or monthly cash payments
• Eliminate monthly mortgage payments (homeowners still pay taxes and insurance)
• Offer a growing line of credit for emergencies
• Help you purchase a new home without monthly payments
Do I still own my home with a reverse mortgage?
Yes, you retain full ownership of your home. The reverse mortgage is simply a loan secured by your home equity.
What are the eligibility requirements for a reverse mortgage?
To qualify, you must:
• Be at least 62 years old
• Own your home outright or have a low remaining mortgage balance
• Use the home as your primary residence
What happens to the reverse mortgage when I pass away or move out?
The loan becomes due and payable. Typically, the home is sold to repay the loan, and any remaining equity goes to you or your heirs. Heirs can refinance or simply pay off the debt and keep the home
Can I lose my home with a reverse mortgage?
As long as you meet loan obligations (e.g., live in the home, pay property taxes, homeowners insurance, and maintain the property), you cannot lose your home due to the reverse mortgage.
What payment options do I have with a reverse mortgage?
You can receive your funds in several ways:
• Monthly payments (term or tenure)
• A line of credit
• A lump sum payment
• A combination of the above
What is the difference between fixed-rate and variable-rate reverse mortgages?
• Fixed Rate: Offers a one-time lump sum with a fixed interest rate for the life of the loan.
• Variable Rate: Offers flexible payment options like monthly payments or a line of credit. The interest rate can adjust annually or monthly and includes a cap.
What is the HECM line of credit and how does it work?
The HECM line of credit:
• Cannot be frozen or reduced, even if home value declines
• Grows over time based on the loan’s interest rate
• Allows optional payments, which increase available credit
• Funds in the Line of credit can be used at will. See payment options.
• Line Of Credit funds if used are added to the mortgage debt.
What is a HECM for Purchase (H4P)?
The H4P allows you to buy a new home using a reverse mortgage instead of a traditional loan. You can use the proceeds from the sale of a previous home or cash to fund the down payment. You won’t need to make monthly payments on the new loan as long as loan obligations are met.
What are the benefits of using a reverse mortgage to purchase a home?
• Increase your buying power to afford a better-suited home for retirement
• Preserve cash assets for emergencies or retirement plans
• Eliminate monthly mortgage payments
• Improve monthly cash flow and financial flexibility
Can I make payments on my reverse mortgage if I choose?
Yes. While not required, you can choose to make payments toward your reverse mortgage. Doing so increases your available line of credit AND reduces the loan balance.
Are reverse mortgage proceeds taxable?
No, the money you receive from a reverse mortgage is considered a loan advance, not income, so it is generally not taxable.
Will my heirs still receive an inheritance?
Yes, your heirs can still inherit your home. If the loan balance is less than the home’s value, they can sell the home, pay off the loan, and keep the difference. If the balance is more, they can pay 95% of the appraised value or walk away with no debt owed due to FHA insurance.
Who can I contact to see if I qualify?
Call Mike at 303-396-2804 or Mike@MadRiverMortgage.com for personalized assistance and to verify your eligibility for a reverse mortgage.
Start Your Reverse Mortgage Journey Today
Take control of your financial future today. Whether you're looking to access your home equity, establish a line of credit, or purchase a new home, Mad River Mortgage is here to guide you every step of the way.
303-396-2804
Colorado and Florida, USA