Reverse Mortgage Basics: Rates, Costs & Options Explained

If you're exploring reverse mortgage options, it's essential to understand the full picture—from typical reverse mortgage terms and costs to what happens to your reverse mortgage estate. At Reverse Mortgage Guides, we provide a simple explanation of reverse mortgage products to help seniors and their families make informed financial decisions.

Whether you're considering your 1st reverse mortgage, looking to refinance reverse mortgage terms, or want to know how to get a reverse mortgage online, we’re here to guide you every step of the way.

Reverse Mortgage: What Is It?

A reverse mortgage is a loan that allows homeowners aged 62 and older to convert part of their home’s equity into cash. Unlike traditional mortgages, with a reverse mortgage, you don’t make monthly payments. Instead, the loan is repaid when the home is sold, the borrower moves out, or passes away.

This government-backed program—often referred to as a government reverse mortgage or FHA HUD reverse mortgage—is designed to support reverse mortgage retirement planning by offering financial flexibility.

Reverse Mortgage Terms & Costs

Understanding the reverse mortgage terms is key to making a smart decision. Here are the basics:

• Interest on reverse mortgage loans accrues over time and is added to the loan balance.
• Average cost of reverse mortgage includes origination fees, closing costs, mortgage insurance, and servicing fees [1].
• Reverse mortgage closing costs vary by lender and loan type.
• Maximum LTV for reverse mortgage depends on age, home value, and interest rates.
• Some lenders offer no cost reverse mortgage options or rebates.

Use our reverse mortgage estimate tool to calculate your potential loan amount and costs.

Reverse Mortgage Purchase & Alternatives

Looking to buy a new home? A reverse mortgage purchase—also called a reverse purchase—lets seniors buy a home using a reverse mortgage instead of a traditional loan. This is ideal for downsizing or relocating during retirement.

Not sure if a reverse mortgage is right for you? Consider an alternative to reverse mortgage, such as a reverse HELOC, reverse mortgage annuity, or other reverse mortgage programs tailored to your needs.

Getting Out of a Reverse Mortgage

If you’re wondering about getting out of a reverse mortgage, there are options:

• Refinance my reverse mortgage to adjust terms or access more equity.
• Buying out a reverse mortgage using personal funds or a new loan.
• Selling the home to repay the loan balance.
• Explore reverse mortgage pros and cons with a reverse mortgage consultant or reverse mortgage specialist.

Reverse Mortgage Estate & Inheritance

When the borrower passes away, the loan becomes due. Heirs can choose to repay the loan and keep the home or sell it. This affects the reverse mortgage estate and may impact inheriting a house with a reverse mortgage.

If you're buying a house from someone with a reverse mortgage, or buying a house that has a reverse mortgage, it's important to understand the repayment terms and title transfer process.

Reverse Mortgage Eligibility & Application

To qualify, you must:

• Be at least 62 years old (age of reverse mortgage eligibility)
• Own a home with sufficient equity
• Complete HUD-approved counseling

You can apply for reverse mortgage online through our secure platform. We also offer services in Spanish (reverse mortgage en español) and support for veterans (VA reverse mortgage).

Local & Specialized Reverse Mortgage Services

We connect you with reverse mortgage brokers near me, including:

• Arizona reverse mortgage experts
• New Jersey reverse mortgage providers
• Reverse mortgage CA specialists
• Credit union reverse mortgage options
• Private reverse mortgage lenders

Whether you're looking for the best reverse mortgage, lowest cost reverse mortgage, or best bank for reverse mortgage, we help you compare offers from reverse mortgage providers and reverse mortgage agents.

Reverse Mortgage Insights & Support

From reverse mortgage basics to advanced topics like reverse mortgage on paid off home, reverse mortgage on land, or reverse mortgage on a condo, we offer resources to help you understand:

• Reverse mortgage line of credit
• Partial reverse mortgage options
• Double reverse mortgage scenarios
• Outliving a reverse mortgage and protections
• Reverse mortgage cash out strategies

Whether you're researching reverse mortgage USA, reverse mortgage co, or reverse mortgage services, we’re your trusted source for education and support.