Reverse Mortgages

How Do Reverse Mortgage Work

Instead of making monthly payments to a lender, a reverse mortgage pays you. The loan becomes due when the homeowner sells the home, moves out permanently, or passes away. Interest accumulates over time and is added to the loan balance. Homeowners remain responsible for property taxes, insurance, and home maintenance.

Who Qualifies for a Reverse Mortgage

To apply for reverse mortgage online or through a local lender, you typically must meet the following:

1. Be at least 62 years of age

2. Own your home outright or have substantial equity

3. Use the home as your primary residence

4. Live in a qualifying property such as a single-family home or FHA-approved condo

Benefits of a Reverse Mortgage Loan

1. Provides supplemental retirement income

2. Eliminates monthly mortgage payments

3. Allows you to stay in your home

4. Multiple disbursement options including lump sum, monthly payments, or line of credit

5. Potential to delay Social Security or pension withdrawals

Reverse Mortgage Loan Rates and Options

Reverse mortgage loan rates can vary based on loan type and lender. Fixed-rate and adjustable-rate options are available. Jumbo reverse mortgage loan products are also offered for high-value properties, providing access to larger loan amounts for eligible borrowers.
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Midwest Mortgage also offers refinance reverse mortgage loan options for homeowners who want to access more equity or convert an existing reverse mortgage to a new loan with better terms.

Pros of Reverse Mortgages

1. No monthly loan payments required

2. Flexible use of funds

3. Access to home equity without selling your property

4. Government-insured options available

Cons of Reverse Mortgages

1. Accrued interest reduces home equity over time

2. May affect the amount of inheritance left to heirs

3. Must keep current with taxes, insurance, and maintenance