After years of paying on your mortgage and building equity, you can finally make that equity work for you — all while maintaining or establishing financial self-reliance. A reverse mortgage allows older homeowners to access a portion of the equity they’ve worked so hard to build.

When you decide to get a reverse mortgage, you no longer make monthly payments. The bank pays YOU instead. You can receive your funds as a monthly income stream, in a lump sum payout or as a combination of the two. Your choice!

A reverse mortgage DOES NOT affect Home Ownership. YOU RETAIN TITLE.

The bank loans you this money based on the current market value of your home, enjoying supplemental income from a home you spent years paying for.

The loan is eventually repaid – either when the home is sold or when you pass away – this includes the amount borrowed, plus any interest. At that time, the remaining equity belongs to you, your surviving spouse or heirs to your estate.

The surviving spouse can choose to stay in the home for the rest of their life if they choose.

To see how much you qualify for, contact Dwayne Stein personally at 504-207-7600 or email [email protected] for a personal appointment to review and discuss the many possible options of receiving your money.

Myths & Realities of a Home Equity Conversion Mortgage

As with many financial products, Home Equity Conversion Mortgage (HECM) loans can be complicated and there may be a number of misconceptions about how the product works. Do you know the myths vs. the realities?

Myth No. 1: The lender owns the home.

You will retain the title and ownership during the life of the loan, and you can sell your home at any time. The loan will not become due as long as you continue to meet loan obligations such as living in the home, maintaining the home according to the Federal Housing Administration (FHA) requirements, and paying property taxes and homeowners insurance.

Myth No. 2: The home must be free and clear of any existing mortgages.

Actually, many borrowers use HECM to pay off an existing mortgage and eliminate monthly mortgage payments*.

Myth No. 3: Once loan proceeds are received, you pay taxes on them.

HECM proceeds are tax-free as it is not considered income. However, it is recommended that you consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits.

Myth No. 4: The borrower is restricted on how to use the loan proceeds.

Once any existing mortgage or lien has been paid off, the net loan proceeds from your HECM loan can be used for any reason. Many borrowers use it to supplement their retirement income, delay receiving social security benefits, pay off debt, pay for medical expenses, remodel their home, or help their adult children. You have worked hard for this asset and prudence along with budgeting should be the proper approach to enjoying proceeds received from your HECM loan.

Myth No. 5: Only low income borrowers need HECMs.

The perception of the HECM as an assist for those with low income is changing – many affluent senior borrowers with multi-million dollar homes and healthy retirement assets are using HECMs as part of their financial and estate planning, and are working closely in conjunction with financial professionals and estate attorneys to enhance the overall quality and enjoyment of life.