A Reverse Mortgage helps homeowners age 62+ eliminate monthly mortgage payments, improve cash flow, and access their home's equity while continuing to own their home.
When it comes to reverse mortgages and traditional mortgages, there are several similarities and differences. While traditional mortgages require borrowers to make regular monthly payments toward their loan balance for several years, reverse mortgages do not require any monthly mortgage payments.
Per Federal Housing Authority (FHA) guidelines, homeowners must use the property as their principal residence while maintaining the home in good condition. Borrowers taking out a reverse mortgage are also required to receive third-party FHA-approved counseling prior to closing.
One of the most powerful and least-understood benefits of a Home Equity Conversion Mortgage: the unused portion of your line of credit is guaranteed to grow every year — regardless of what happens to your home's value or the housing market.
This growth is guaranteed by the terms of the HECM, not tied to market conditions. It compounds over time, giving you more access to funds later than you had at the beginning.
This is why many financial advisors recommend setting up a HECM line of credit early — even before you need the money.
The reverse mortgage process is designed to be transparent and educational. Required HUD counseling ensures you understand the product before moving forward.
Call an OptionOne professional from the comfort of home. We'll help you determine which reverse mortgage solution meets your needs, and can even speak with your family or financial advisor.
Speak with a government-approved counselor for added confidence. You'll receive a certificate that allows you to complete your application.
OptionOne orders a professional appraisal and inspection on your behalf to determine how much you can borrow.
Sign your final paperwork in person. If you had an existing mortgage, it's paid off first. Receive remaining funds as a lump sum, monthly payment, line of credit, or combination.
With a reverse mortgage, monthly mortgage payments are optional, as long as you keep current with property taxes, insurance, and maintenance.
By eliminating monthly mortgage payments, you can dramatically increase your cash flow. If you have an existing mortgage, it will be paid in full from the reverse mortgage proceeds — but you can still get a reverse mortgage even if you don't currently have a mortgage.
Your current mortgage is paid in full from the reverse mortgage proceeds. Remaining funds go to you.
Even if your home is paid off, you can access equity through a reverse mortgage.
Repayment is not due until the final borrower no longer lives in the home. That's one of the biggest benefits.
You can pay as little or as much as you want, whenever you want. Optional payments give you complete flexibility.
The advantages that make reverse mortgages one of the most powerful retirement income tools available.
Continue living in your home without mandatory monthly mortgage payments.*
Maintain ownership and title while living in your primary residence.
Use your equity however you choose without generating a taxable event.
Structure your funds the way that works best for you:
You'll never owe more than the home's value when it's sold. Your heirs are protected by FHA insurance backing the loan.
See the key differences at a glance.
| Traditional Mortgage | Reverse Mortgage | |
|---|---|---|
| Monthly Payment | Monthly mortgage payment required | No required monthly mortgage payment |
| Loan Balance | Loan balance decreases over time | Loan balance may increase over time |
| Line of Credit Growth | HELOC line can be reduced or frozen | HECM line is guaranteed to increase over time |
| Direction of Payments | Homeowner pays lender | Lender pays homeowner |
| Age Requirement | Any qualified borrower | Age 62 or older |
| Repayment | Standard monthly repayment | Deferred until borrower permanently leaves the home |
| Non-Recourse Protection | Borrower may owe more than home's value | Never owe more than home's value at sale |
Our customers have found creative ways to use reverse mortgages to improve their incomes, lifestyles, and monthly cash flow. Here are the most common.
Redirect that money to pay for everyday bills and expenses.
Pay off credit card balances or other high-interest debts.
Cover healthcare expenses and make it easier to stay in your home.
Set aside funds to help pay for long-term care in the future.
Make updates, repairs, or modifications to live more comfortably.
Avoid taxable withdrawals from 401(k) or retirement plans by using tax-free reverse mortgage funds instead.
A safety net for emergencies or occasional expenses that grows over time.
Assist a child or grandchild with college tuition or a home down payment.
Yes. One of the benefits of how reverse mortgages work is that your heirs have options. When the home passes to them, they choose how to handle the loan.
Most commonly, the loan is repaid through the sale of the home. However, if your children want to keep the property, they can arrange their own financing to pay off the loan balance.
Everything you need to know before speaking with a specialist.
Choosing a reverse mortgage is one of the most important financial decisions of your retirement. Here's why homeowners choose OptionOne to guide them through it.
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Discover how a Reverse Mortgage may improve your financial flexibility while allowing you to remain in the home you love.