Secure Your Retirement with a Reverse Mortgage
You’ve diligently paid off your mortgage for years—it’s time to cash in on the benefits.
Reverse mortgages allow homeowners aged 62 and older to eliminate their monthly mortgage payments and convert a portion of their home equity into cash.
How does a reverse mortgage work?
Homeowners apply for a reverse mortgage through an approved lender such as OM Mortgage.
To determine the loan amount, your lender will evaluate your home’s value, your age, and the current interest rates.
Once approved, you’ll receive the loan amount in a lump sum, monthly payments, a line of credit, or a combination of these options.
You retain your home ownership for as long as you live in it.
Reverse mortgage requirements
Reverse mortgage eligibility is based on the following:
- Borrower is aged 62 or older
- Home is the borrower’s primary residence
- Homeowner has 50% or more equity in the home
- Borrower can continue paying taxes, insurance, and maintenance costs
- Homeowner must participate in reverse mortgage counseling
Your lender will help you determine your eligibility and whether a reverse mortgage is right for you.
Reverse mortgage loan FAQs
A reverse mortgage is a loan that allows eligible homeowners to access a portion of their home equity without making traditional monthly principal and interest payments. Interest and fees generally accrue over time, and the loan must eventually be repaid.
Eligibility depends on the type of reverse mortgage. For a federally insured Home Equity Conversion Mortgage (HECM), borrowers generally must be at least 62 years old and meet applicable property, financial, and counseling requirements.
Yes. Borrowers retain ownership of their homes, provided they meet the loan obligations. These generally include maintaining the property, paying applicable property taxes and homeowners insurance, and using the property as required by the loan terms.