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Reverse Mortgages: How to Make the Best Use of Money in Retirement

Blog posted On July 07, 2022

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As homeowners age, they begin to prepare for retirement. Most homeowners would prefer to be debt-free by retirement, but many still pay a mortgage. Reverse mortgages are one home financing option that can help homeowners eliminate monthly mortgage payments. But there are other options that can help you achieve a debt-free retirement.

Reverse mortgages

All In One Loan™

Must be at least 62 years old
Home must be a primary residence
Must own home outright or have significant equity
Must receive reverse mortgage counseling
Reverse-amortization schedule (loan balance and interest accruals will continue to grow

Lower upfront costs
No reverse-amortizing of the loan
Merges personal banking and the mortgage
Uses income to lower principal and lifetime interest expense
Helps customers retain their home and grow equity
Provides 24/7 access to equity dollars without refinancing
No minimum age requirement to qualify
Home does not need to be primary residence

Reverse Mortgage Amortization Schedule

One of the items reverse mortgage lenders provide applicants is an amortization schedule, which details how the loan’s balance will grow over time. The best way to conceptualize this is to create a hypothetical amortization schedule even before you begin the process of shopping for a reverse mortgage. Upon using a reverse mortgage calculator, you will clearly see how your loan balance will increase (as interest and principal compound) until the reverse mortgage is repaid. Because you aren’t required to make monthly payments, the loan balance will grow exponentially and the accruals on interest will continue to rise.

Let us know if you would like to explore options that can help you retire with MORE.