Refinancing with a Reverse Mortgage

There are only 3-ways to access equity in your home:

  1. Sell the Property – this way you get all the equity. But you would need to purchase another place to live, or have other living arrangements in place. There may also be capital gains taxes to be paid (check with your tax professional).
  2. Acquire a standard, cash-out refinance – considering today’s mortgage rates, this might not be the best time. You can generally withdraw up to 80% of the equity in a primary residence. But you would have to make monthly payments, fully amortized or interest only.
  3. Apply for a reverse mortgage – also called a HECM (Home Equity Conversion Mortgage), this type of loan will allow you access to your home’s equity to; pay off an existing loan, pay off high-interest rate debt, provide you additional cash to live on. The best part is, you are never required to make a payment.

How Much Can You Get?

Pre-COVID we could lend up to 50% of the property’s value. Once rates started spiraling higher, most programs cut that back to about 35% to 45%. We have access to all the major programs so we will find the one that will give you the most.

How could you take the money?

You can take what you qualify for:

  • In one lump sum
  • Cash at close, plus a line of credit
  • Monthly Tenure? Receive monthly checks from the property. Might be fun to have the property make payments to you for a change.

Contact us for a formal quote.

Apply Now