3 Truths about Reverse Mortgages

Truth #1: A Reverse Mortgage Can Fill Income Gaps

A reverse mortgage borrower doesn't have to take all their equity at once. And a key feature about a reverse mortgage is, there are no monthly payments.

Other factors to consider include:

• Maintain investments and avoid dipping into savings by leveraging reverse mortgage proceeds to increase cash flow. 
• Keep the flexibility of a stock-heavy portfolio without worrying about the impact of market downturns on your main source of income.
• Leverage an equity reserve with a reverse mortgage line of credit that offers increased borrowing power over time.

Truth #2: Equity Is a Viable Retirement Strategy

Though often dismissed as a source of retirement income, home equity can be a major factor in one's retirement portfolio. Though home equity in older people’s homes has doubled since 2010, many are not using it to their advantage. The National Reverse Mortgage Lenders Association reports that older adults had $11.8 trillion of equity locked in their homes in 2023. 

Truth #3: A Reverse Mortgage Can Help You Stay in Your Home

Many retirees want to continue to live in their homes, In many cases, they can use proceeds from a reverse mortgage to make needed repairs.