What Are Reverse Mortgages?
Reverse mortgages—specifically the FHA-insured Home Equity Conversion Mortgage (HECM)—are loans available to homeowners aged 62 and older, allowing them to convert a portion of their home’s equity into tax-free funds. Unlike a traditional mortgage, where you make monthly payments to a lender, a reverse mortgage pays you—either in a lump sum, monthly installments, or through a line of credit. The loan doesn’t require repayment until the homeowner sells the home, moves out, or passes away.
Why They’re Beneficial
Reverse mortgages can significantly improve financial stability for retirees by supplementing income, covering medical expenses, paying off existing debts, or financing home renovations. Because there are no required monthly mortgage payments, seniors can maintain a more flexible budget while staying in the comfort of their own home. The funds can be used however the borrower chooses, and the homeowner retains the title to the home as long as basic requirements—such as paying property taxes and insurance—are met.
Additionally, reverse mortgages are non-recourse loans, meaning the borrower or their heirs will never owe more than the home's appraised value at the time of repayment. This makes them a low-risk option for aging homeowners seeking to maintain independence and control over their financial future.
Who It’s For
Reverse mortgages are best suited for:
Ray Campbell works closely with retirees and their families to determine if a reverse mortgage is the right solution. He ensures every detail is clearly explained and provides trusted guidance throughout the entire process.
