Reverse News & Views

You’ve probably heard the claim that “reverse mortgages eat away your home equity.” It sounds alarming—but it’s not the full story.

While the loan balance grows if borrowers skip payments, home equity also depends on appreciation. In many cases, rising home values and smart draw strategies help homeowners maintain or even increase equity over time.

Today’s reverse mortgage borrowers have real control—with flexible payout options, voluntary payments that expand the credit line, and tools that project future equity and balances.

Forget the old image of reverse mortgages as a “last resort.” Today’s borrowers are anything but desperate—they’re strategic. Increasingly, financially savvy homeowners are using reverse mortgages as flexible planning tools to enhance retirement, fund home purchases, or manage tax-efficient income. From crafting fair divorce settlements to paying for in-home care, the modern reverse mortgage empowers retirees to live with more control, freedom, and financial confidence.

A reverse mortgage line of credit (HECM LOC) lets homeowners access home equity as needed — but few know they can later convert that growing line into monthly income for just $20. This simple step, called an LOC conversion, allows borrowers to turn unused home equity into steady cash flow at any time. Because the HECM credit line grows over time, waiting to convert can significantly increase monthly payouts — similar to delaying Social Security benefits. Whether you’re planning for long-term care, supplementing retirement income, or replacing lost income for a spouse, an LOC conversion can be a powerful reverse mortgage income strategy.

Reverse mortgages aren’t just about skipping payments—they can also create tax-smart opportunities. Beginning in 2026, payments made towards the Mortgage Insurance Premium (MIP) may be deductible, so HECM borrowers who make voluntary payments can time their spending to gain a significant tax advantage. With the REVERSE plus ANALYZER, originators can clearly model this powerful strategy.

When rates are in the news, reverse mortgages should be, too. Fed cuts don’t directly set mortgage rates—markets do. Because HECM guidelines key off Treasury yields (especially the 10-year CMT), even small dips can increase a borrower’s proceeds. Case in point: with a 2.50% margin, the expected rate moved from 6.69% to 6.55% in a few days—boosting one client’s available funds by $9,075. If you or your borrowers are considering a reverse mortgage, lower rates may unlock more cash or line of credit, translating into real flexibility and peace of mind in retirement.

Reverse mortgages aren’t just for those in financial distress—many industry pros plan to use them for strategic retirement planning. From growing a line of credit to buying a dream home, HECMs offer powerful advantages even when you don’t need one. Discover how mortgage insiders are structuring their own reverse mortgages for long-term security.

Did you know you can make payments on a reverse mortgage—and that doing so can actually grow your equity and line of credit? Smart prepayments on an adjustable-rate HECM can increase financial flexibility, preserve equity, and even unlock tax benefits. Learn how voluntary payments can be a savvy part of retirement planning.

HECM for Purchase lets older homeowners buy a new primary residence using a reverse mortgage—often with no monthly mortgage payments. It’s a little-known option that helps retirees relocate, downsize, or upgrade while keeping more cash in reserve. Discover how this powerful tool opens up new possibilities for homeownership in retirement.

The HECM line of credit is one of the most powerful tools in retirement planning—offering homeowners flexible access to funds that actually grow over time. With features like liquidity, security, and compounding growth, this reverse mortgage option stands out as a smart way to manage cash flow and prepare for the unexpected.

The non-recourse feature is a powerful safeguard built into every reverse mortgage: it ensures neither homeowners nor their heirs will ever owe more than the home is worth—no matter what. Learn how this FHA-backed protection works and why it’s a key reason reverse mortgages are safer than many people think.