Reverse Mortgages

A reverse mortgage is a financial product designed for homeowners aged 62 or older that allows them to convert part of the equity in their home into cash without having to sell the property or make monthly mortgage payments.

It’s called a "reverse" mortgage because, instead of the borrower making payments to the lender, the lender makes payments to the borrower, either as a lump sum, monthly payments, or a line of credit.

Reverse Mortgages Characteristics

1) No Monthly Payments: Borrowers are not required to make monthly mortgage payments, but they must still pay property taxes, homeowner’s insurance, and maintain the home.

2) Loan Repayment: The loan is repaid when the borrower moves out, sells the home, or passes away. If the home is sold, the proceeds go toward paying off the loan.

3) Non-Recourse Loan: With an FHA-insured reverse mortgage, the borrower (or their heirs) will never owe more than the home is worth when it is sold, even if the loan balance exceeds the home’s value.

4) Equity Decreases: As the homeowner receives payments or accrues interest on the loan, their home equity decreases. This means less value is left in the home for heirs.

5) Age and Value Dependent: The older the borrower, the more they can typically borrow. The amount also depends on the home’s value and current interest rates.

6) Payment Options: Reverse mortgage borrowers can choose how to receive their loan proceeds, which include.

7) Lump sum: A one-time payment of a large sum.

8) Monthly payments: Fixed payments for a specified period or for as long as the borrower lives in the home.

9) Line of credit: Funds are available as needed, similar to a Home Equity Line of Credit (HELOC), and interest is only charged on the amount borrowed.

10) Combination: A mix of the above options.

Copyright ©2025 | Licensed to Do Business | 2026100

This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply

Corporate | NMLS ID 1660690

Corporate Address : 5559 S Sossaman Rd #1-101. Mesa, AZ 85212

© Copyright 2025 NEXA Mortgage . All Rights Reserved

Contact

Social Media

Copyright ©2021 | {{ custom_values.lo_team_name }}

Licensed to Do Business | {{ custom_values.lo_nmls }}

This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Copyright © 2021 | {{ custom_values.lo_mortgage_company }}

Corporate | NMLS ID {{ custom_values.lo_mo1 Columnrtgage_company_nmls }}

Corporate Address : {{ custom_values.lo_mortgage_company_address }}

Corporate NMLS | Company Website:

NMLS Consumer Access Portal