Perennial Funding > Blog > Mortgages > Is A Reverse Mortgage Right For You?

Is A Reverse Mortgage Right For You?

A reverse mortgage isn’t for everyone, especially when you have to be 62 years of age or older to be eligible for this mortgage loan. A reverse mortgage can be the ideal mortgage solution for seniors who choose to collect their home equity while preserving homeownership of the property. However, there are many factors to consider before locking in your final decision.

Reverse Mortgage Features:

  • The cash you take from a reverse mortgage are not taxable
  • There are no monthly payments
  • A reverse mortgage loan does not effect your credit
  • The amount of funds you can collect from your home equity depending on your age
  • A reverse mortgage does not affect your Medicare or social security benefits
  • You are given an option between a fixed or variable interest rate
  • You will be maintain the title to your property
  • You are still deemed responsible for the following:
    • Insurance
    • Utilities
    • Taxes
    • Maintenance of the condition of your property

Relevant Facts:

  • The payment on a reverse mortgage is due when a homeowner passes, if you vacate the property. The heir has a year to decide either to sell the property, take a mortgage to maintain homeownership or let the bank take it.
  • The interest and loan amount increases overtime
  • The interest and your total debt amount accumulate as you receive payments
  • If you fail to pay your property insurance, taxes or decline to maintain the condition of your home, your reverse mortgage loan may be scheduled for payment


  • 62 years of age or older
  • There are no income requirements
  • Certain home types will not be eligible for this mortgage loan
  • You do not make any loan payments on a reverse unless you choose to vacate the property
  • To be eligible for a reverse mortgage, the reverse mortgage loan must be the only existing mortgage associated with that certain property
  • Usually approved when you owe less than 50% of your home value, however, certain Lenders may be able to negotiate with you

Depending on your certain financial situation, the Reverse Mortgage loan option can be ideal for you. However, there are a lot of factors to consider before making a decision. Many people who have decided to go down this path have been satisfied with their choice because it allows seniors to live through their retirement comfortably.

We want to equip you with the right information for you to best determine whether a reverse mortgage is right for you. There are certain people who have engaged in a reverse mortgage loan and have deeply regretted it because they trusted the opinion of someone who did not have their best interest in mind. With that said, review your financial options with your trusted loan officer and do your research with National Reverse Mortgage Lenders Association (NRMLA). If you need additional information, the U.S. Department of Housing and Urban Development (HUD) is also another go-to outlet for reverse mortgage information. 

Perennial Funding Links and Resources:
Top Common Mortgage Myths:

The Difference Between A 15-Year Mortgage And 30-Year Mortgage:

National Reverse Mortgage Lenders Association (NRMLA):

U.S. Department of Housing and Urban Development (HUD):


NMLS #247954
Click here for the Perennial Funding NMLS access page.

Perennial Funding LLC, 161 Washington St. Suite 950, Conshohocken, PA 19428

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*By refinancing your existing mortgage your total finance charges may be higher over the life of the loan.

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