Access Your Home Equity with a Reverse Mortgage

Calculate Your Eligibility

Recent data suggests that retirees are using their home equity to help fund their retirements.  In most cases, retirees are opting to move to less expensive areas which can free up their home equity, and in some cases, rival or even exceed their retirement and 401k savings1.

What if your retirement plans involve staying in your home and aging in place?  Did you know that a reverse mortgage will allow you to access your home equity, without having to sell your home, while you continue to live in your home?

You Don’t Have to Move to Access Your Home Equity

First, what is home equity?

Home equity is the difference between what is owed on the mortgage and what the home is currently worth. For example, if you owe $100,000 on your mortgage and your home is worth $350,000, this means you have $250,000 of home equity.

Two ways home equity can grow are:

  • the amount of equity in your home will rise as you pay down your mortgage and
  • the amount of equity will increase if the value of your home goes up

It is important to note that the equity in your home can also decrease.  It is possible the home’s value may fall at a faster rate than at which the loan’s principal balance is being paid down.

Stay in Your Home.  Access Your Home Equity with a Reverse Mortgage

A reverse mortgage allows homeowners who are 62 or older access to a portion of their home equity as cash which can be used to help supplement income during retirement.  Reverse mortgage borrowers do not have to repay the loan as long as they live in the home as their primary residence, pay property taxes and insurance, and maintain the property.2

Borrowers can receive the available equity from their reverse mortgage as a lump sum3, monthly installments, or a line of credit.4 The lump-sum payment can be a good option if you want to pay down other debts or make improvements to your home.  Receiving monthly installments can help cover ongoing expenses and alleviate stress regarding monthly cash flow. A line of credit may make sense for an emergency fund because it is available anytime you need it. An added benefit of the line of credit is that if your home value increases over time, so will the amount available to you.5

Are you interested in accessing your home’s equity with a reverse mortgage?  Call (800) 976-6211 to speak with a licensed reverse mortgage specialist to find out how much you may qualify for.


1How Americans are using their homes to fund retirement (

2 You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.

3 Only available on fixed rate reverse mortgage.

4 The funds available to the borrower may be restricted for the first 12 months after loan closing, due to HECM reverse mortgage requirements.  In addition, the borrower may need to set aside additional funds from the loan proceeds to pay for taxes and insurance.