Stone Bridge Mortgage Group_When to Consider a Reverse Mortgage

There are lots of factors to consider when deciding if a reverse mortgage is right for you. The largest factors include: your age, do you plan on staying in your home and will you still be able to afford taxes, what you plan on leaving your heirs, and home upkeep.

Below we list three reasons for and against a reverse mortgage. Reverse mortgages are not for everyone, but it can be a viable source for more revenue.


Access to more money. A reverse mortgage is technically a loan and it illuminates your existing mortgage. The loan gives you access to cash. This money can be used anyway you want. To make ends meet, increase your monthly spending budget, or buy something you always wanted.

High Value, Low Rates. When your house value increases, so does your loan amount. The loan amount also increases when interest rates are low. Housing values are generally up and rates are still at a historic low.

Staying in the Home. If you plan on staying in your home, a reverse mortgage makes sense. A reverse mortgage can be an alternative to downsizing and moving into a smaller place. A reverse mortgage means you still own your home, you are only borrowing against your equity.


Upkeep Costs.  A reverse mortgage makes your mortgage payments go away, but you still must be able to pay taxes, insurance, and maintenance costs for your home. If you are not financially able to pay for these items in addition to your cost of living, a reverse mortgage is not right for you.

Assets for Heirs. A reverse mortgage lets you retain ownership of the home and allows you to pass this asset on to your heirs, but they are also responsible for paying back the loan. Most heirs pay back the loan by selling the home. They will never owe more than the value of the home.

Leaving the Home. If you do not plan on staying in the home that you are getting a reverse mortgage for then a reverse mortgage may not be for you. The cost of a loan is best spread over a minimum of five years.

These are very general guidelines to help you get started. It is recommended that you consult an expert in Reverse Mortgages to get the information that is tailored for you situation.

Stonebridge Mortgage Group can help you with your reverse mortgage and other We serve the greater Portland area and are in Gresham, Oregon.

Call us today at 503.661.5580


Important Information to Understand

  1. At the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds.
  2. Charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees.
  3. The loan balance grows over time and interest is charged on the outstanding balance.
  4. The borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home.
  5. Interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full repayment.


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