The Reverse Mortgage Explained By An Experienced Industry Veteran

The Reverse Mortgage Explained By An Experienced Industry Veteran Brought to you by www.myhecm.com. Reverse mortgage resources for seniors, their families, and their advisors. Part 1 - Why the Reverse Mortgage? According to 2015 US Census data, the median household net worth for Americans 65 and older is $201,500. Not too shabby, right? But here's the problem: almost 70% of that number is home equity. Home equity? What's that? Home equity is the difference between what your home is worth and what you owe on your mortgage. Home equity is great to have, but it's not liquid. You can't exchange it for a nice dinner or plane tickets to a tropical destination. It has no real impact on your retirement lifestyle unless you convert it into cash. In the past, there were just two ways to convert home equity into cash: Sell your home or do a "cash out" refinance. Selling makes no sense if you want to keep your home. A "cash out" refinance can sometimes make sense, but it comes with the downside of a monthly payment. Fortunately, there's now a third and better option: the reverse mortgage. Part 2 - What is a Reverse Mortgage?