Larry McAnarney
815-703-4745

Understanding Reverse Mortgages

If you have been asking yourself the question "What is a reverse mortgage?" you are not alone. There has been more and more talk about this unique loan product lately, and more and more people obtaining reverse mortgages.

Understanding Reverse Mortgages

What is a Reverse Mortgage? A Reverse Mortgage is a loan product created by the Department of Housing and Urban Development (HUD) in the late 1980's to allow Senior Citizens to retire more comfortably by borrowing the equity in their homes. At it's most basic definition, it's a type of home loan where the lender pays you, instead of you paying the lender. This is the main difference between the reverse mortgage and the traditional mortgage and is the reason that it has become known as the "Reverse" mortgage. The most popular reverse mortgage is the Home Equity Conversion Mortgage, or HECM. HECM Loans are administered and insured by the FHA (Federal Housing Administration) and it's completely safe.

Basic reverse mortgage requirements are:

>> Borrowers must be Age 62 years or older
>> Own their home and have enough equity in to qualify
>> Occupy the home as primary residence
>> Receive counseling by an approved HUD/FHA counselor

What is a Reverse Mortgage? It may just be the answer to your financial woes. Please read on. The best feature of a reverse mortgage is that the loan proceeds DO NOT HAVE TO BE PAID BACK, so long as the borrower lives in the home. This feature makes it perfect for seniors trying to retire on a less than sufficient nest egg.

Reverse Mortgage Payment Options

>> Lump Sum Disbursement
>> Monthly Payments
>> Line of Credit
>> A combination of the Above

For more information on what a reverse mortgage is, and other details, you may visit the page How does a Reverse Mortgage Work?. You are always welcome to Contact Us and we will help you find out if a reverse mortgage is right for you.

Verified Reviews

(224)

Excellence! I am very impressed with the work everyone involved put into my reverse mortgage. I felt fully informed going through this process and every question was answered completely and quickly. I would recommend Larry to anyone who asks about getting a reverse mortgage.

Diane S — Aug 30, 2022

Professional-Patient-Flexible-Thoroughly Knowledgeable Our financial planner suggested we look into a reverse mortgage to free up extra assets to help us use them for vacations, anticipated and unanticipated expenes,while protecting current cash flow. Additionally, having a line of credit provides peace of mind that we will have the cash available to meet whatever the future holds. Larry provided the answers to our questions and pointed out the way the process works in a way we could understand and the pros and cons of the choices available relative to the costs associated with each choice, no hidden fees, and a clear understanding of our obligations. Larry helped us to consider family issues that might arise so we could determine what our goals are upon our passing for our children. He is professional, patient, flexible, and most of all thoroughly knowledgeable.

Bob V — Mar 31, 2017

Larry Was Outstanding & Patient Larry was outstanding and patient in his help. Over the phone, he took me page by page in filling out the forms, a task that otherwise would have been daunting. He answered all my questions with kindness and courtesy. He made the reverse mortgage happen. I could not have done it without his help. He is the best!

Carol F — Jan 26, 2024