Reverse Mortgage Loans
Turn Home Equity Into Cash You Can Use Today
If you're 62 or older and your home has built substantial equity, a reverse mortgage offers a different way to access that wealth. Instead of making monthly payments to a lender, the lender makes payments to you. You can take funds as a lump sum, a line of credit you draw from as needed, or regular monthly payments. It's a way to unlock the value you've built while remaining in the home you own. At Perch Lane Mortgage, we explain exactly how reverse mortgages work, what they cost, and whether this approach fits your financial picture. We believe you deserve clear answers and the time to make an informed decision.
Ways to Access Your Home Equity
A reverse mortgage is structured around how you want to receive funds and when you need them. We offer flexibility in how you take your money so you can match the structure to your financial goals.
-
Lump Sum Distribution
Receive a single payment upfront that reflects a portion of your available equity. This works well if you have a specific expense or opportunity you're funding now. You'll know exactly what you're borrowing and what it costs from the beginning.
-
Line of Credit
Access funds whenever you need them, up to your available limit. Draw only what you use and only when you use it. This provides flexibility for future needs while controlling how much you borrow at any given time.
-
Monthly Tenure Payments
Receive regular monthly payments for as long as you live in your home. This creates predictable income you can rely on, supplementing Social Security or other retirement income streams.
Common Questions About Reverse Mortgages
Reverse mortgages work differently than traditional mortgages. Here are answers to the questions we hear most often as people explore whether this option makes sense for their situation.
Do I have to make monthly payments on a reverse mortgage?
No. With a reverse mortgage, you make no monthly payments. The loan balance grows over time as interest accrues. You repay the loan when you sell the home, move out, or pass away. This is fundamentally different from a traditional mortgage, where you make monthly payments that build equity. With a reverse mortgage, equity decreases as the loan balance grows.
What happens to my home if I take out a reverse mortgage?
You continue to own your home. You remain on the title and are responsible for property taxes, insurance, and maintenance. The lender has a lien against the property to secure the loan. When you sell the home or the loan is repaid, any remaining equity goes to you or your heirs.
Can I lose my home if I can't pay taxes or insurance?
Yes. Even though there are no monthly mortgage payments, you must continue paying property taxes and homeowners insurance. If these obligations aren't met, the lender can call the loan due. This is why understanding your ongoing financial obligations is critical before taking out a reverse mortgage.
How much can I borrow with a reverse mortgage?
The amount available depends on your age, the value of your home, current interest rates, and which reverse mortgage program you use. Generally, the older you are and the more valuable your home, the more you can borrow. We calculate your specific available funds based on these factors.
What are the costs of a reverse mortgage?
Reverse mortgages include closing costs similar to traditional mortgages, plus a mortgage insurance premium, interest, and servicing fees. These costs reduce the net amount of funds available to you. We provide a detailed breakdown of all costs before you commit so you can evaluate whether the benefit justifies the expense.
What happens to my reverse mortgage if I move or pass away?
If you move out of the home for more than 12 consecutive months, the loan becomes due. If you pass away, your heirs have the right to keep the home by refinancing the loan or selling it to repay the balance. Any remaining equity belongs to your estate.