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Unlock the Equity in Your Home

A reverse mortgage is a unique financial tool that allows homeowners aged 62 or older to access the equity in their home without selling or moving. If you’re looking for a way to supplement your income during retirement, a reverse mortgage could be the solution you need.

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At Pacific Northwest Home Loans, we’re here to help you make informed decisions about your financial future. Our team of experts can walk you through the reverse mortgage process and answer all your questions.

  • A reverse mortgage is a type of loan that enables homeowners to convert a portion of their home equity into cash. Unlike a traditional mortgage where you make monthly payments to a lender, with a reverse mortgage, the lender pays you.

    The loan is repaid only when the homeowner sells the home, moves out permanently, or passes away.

  • Here’s how it works:

    1. Eligibility: Homeowners must be 62 years or older and have significant equity in their home.

    2. Loan Amount: The loan amount is based on factors such as the home’s value, the homeowner’s age, and current interest rates.

    3. Payment Options: Borrowers can receive funds as a lump sum, monthly payments, a line of credit, or a combination of these.

    4. Loan Repayment: The loan balance is due when the homeowner no longer lives in the home, usually from selling the property or refinancing.

    1. Home Equity Conversion Mortgage (HECM):

      • The most common type, backed by the Federal Housing Administration (FHA).

      • Offers protections such as capped interest rates and insurance guarantees.

    2. Proprietary Reverse Mortgage:

      • Private loans for homeowners with high-value homes exceeding FHA limits.

    3. Single-Purpose Reverse Mortgage:

      • Offered by some state and local governments or nonprofits for specific uses, like home repairs or property taxes.

    • Supplement Your Income: Use the funds to cover living expenses, medical costs, or other needs.

    • No Monthly Payments: Stay in your home without the burden of monthly mortgage payments (you’re still responsible for property taxes, insurance, and maintenance).

    • Flexible Payout Options: Choose how you receive your money to best fit your financial needs.

    • Non-Recourse Loan: You will never owe more than the home’s value when the loan is repaid.

    • Costs and Fees: Reverse mortgages come with upfront fees, such as origination fees and mortgage insurance.

    • Homeownership Obligations: You must continue to pay property taxes, homeowners insurance, and upkeep costs to avoid loan default.

  • Reverse mortgages are a great option for seniors looking to improve their cash flow or remain in their homes during retirement. However, they’re not for everyone. We recommend speaking with a financial advisor or one of our loan specialists to understand the full implications of a reverse mortgage.