Newland Mortgage
(503) 816-4602

What Is a Reverse Mortgage?

A reverse mortgage allows eligible homeowners, typically age 62 or older, to convert part of their home equity into cash while continuing to live in their home.

How Does It Work?

Homeowners may receive funds as a lump sum, monthly payments, a line of credit, or a combination of these options. The loan balance generally increases over time as interest and other charges accrue.

Who May Qualify?

  • At least one borrower is typically 62 or older.
  • The home is the borrower's principal residence.
  • The homeowner has sufficient equity.
  • Financial and property requirements must be met.
  • Required counseling may apply.

How Can Funds Be Used?

Reverse mortgage proceeds can generally be used for retirement income, home improvements, medical expenses, paying off an existing mortgage, or other financial needs.

Costs to Consider

  • Origination fees
  • Mortgage insurance premiums
  • Closing costs
  • Servicing fees
  • Interest

Important Responsibilities

Borrowers generally remain responsible for property taxes, homeowners insurance, property maintenance, and complying with the loan terms.

Important: A reverse mortgage is a significant financial decision. Consider its potential impact on home equity, inheritance, taxes, government benefits, and long-term financial planning.