Before you can learn what a reverse mortgage is, let us start by talking about what it is NOT. 

1. What is a Reverse
Mortgage… in plain
English
By All Reverse Mortgage®
(800) 565-1722
www.allrmc.com
© Copyright All Reverse Mortgage Company | Phone (800) 565-1722

2. Before you can
learn what a
reverse mortgage
is,
let us start by
talking about what
it is NOT.
© Copyright All Reverse Mortgage Company | Phone (800) 565-1722

3. Reverse mortgages are
NOT:
• Just for the desperate
• A trade for your home
ownership
• Free money from the
government or any other type of
entitlement program
© Copyright All Reverse Mortgage Company | Phone (800) 565-1722

4. In plain English, a reverse
mortgage is nothing more than
an equity loan secured by your
home which is designed to
defer the mortgage interest.
It’s as simple as that.
© Copyright All Reverse Mortgage Company | Phone (800) 565-1722

5. The most common type of reverse mortgage is
the HECM, which is the acronym for Home
Equity Conversion Mortgage.
This product was created by the Federal
Housing Administration in 1989. While a
traditional home mortgage requires the
homeowner to make scheduled monthly
payments over a specified term, (usually 30
years) the reverse mortgage interest is not due
until the loan reaches maturity.
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6. As long as the homeowner still resides
in their property and pays their property
taxes and insurance they can take
advantage of not making monthly
payments on the money they borrowed.
© Copyright All Reverse Mortgage Company | Phone (800) 565-1722

7. You own your home
With a reverse mortgage you continue to own
your home, paying your property taxes and
homeowners insurance just as before. Like
any mortgage, you will receive a monthly
statement which will outline all interest charges
and balance information.
The only difference will be the absence of a
coupon to return your monthly payment as no
payment is necessary.
© Copyright All Reverse Mortgage Company | Phone (800) 565-1722

8. What are the
qualifications?
Reverse mortgages are available to all US
citizens and Permanent Residents age 62 or older
with substantial equity in their home. The
maximum loan amount you may qualify for is
based on the youngest homeowner’s age, current
rates, and home value.
There is no income or credit score requirements
as there are no monthly repayments. You must
continue living in your home as your primary
residence and continue to pay your properties
taxes and insurance.
© Copyright All Reverse Mortgage Company | Phone (800) 565-1722

9. You’re in the driver’s seat
You can choose to make voluntary repayments of the mortgage
interest in part or full without penalty. That’s right; you can make
payments back on your reverse mortgage. You can also deduct
that mortgage interest just as you would a traditional home loan
and you can pay off the entire loan at any time with
cash, refinancing or selling.
Some believe that once you get a reverse mortgage the bank
will eat all of the homes equity leaving your heirs with nothing
but a mound of debt. Wrong. While no one can predict your
homes appreciation, you can rest assured that your heirs have
no recourse to the reverse mortgage you took.
© Copyright All Reverse Mortgage Company | Phone (800) 565-1722

10. How is the loan repaid?
Unless repaid voluntarily, the reverse mortgage is not due until
the last surviving borrower passes away or fails to occupy the
property as their primary residence. The heirs will have ample
time (up to 12 months) to complete a sale or refinance
transaction to pay back the balance of the loan.
If your heirs choose not to act, the reverse mortgage lender will
have no choice but to foreclose on the home. In the event that
the sale of the property does not yield sufficient funds to pay off
the balance of the loan, the government insurance that you
would have paid for as a part of closing your reverse mortgage
loan will cover your estate. The Lender will be reimbursed for
any shortfall from the Mortgage Insurance fund.
© Copyright All Reverse Mortgage Company | Phone (800) 565-1722

11. Who is it for?
Anyone who has desires or needs that cannot be met with
their current income levels. Reverse mortgages are a
great tool to help you stay in the home you love or to
simply enhance your retirement years.
© Copyright All Reverse Mortgage Company | Phone (800) 565-1722

12. Who is it NOT for?
Because there are typical costs associated with setting up
a reverse mortgage, (appraisal and origination charges) it
is not recommended for people who do not intend to live in
their home for a reasonable amount of years to realize its
benefits.
© Copyright All Reverse Mortgage Company | Phone (800) 565-1722

13. What about taxes?
Cash received by any mortgage is not considered income
and will not be taxed.
© Copyright All Reverse Mortgage Company | Phone (800) 565-1722

14. Required counseling
The Federal Housing Administration wants you to fully
understand the reverse mortgage and requires that all
applicants receive independent 3rd party counseling by
phone or in person. Once the counseling is completed you
will receive a certificate of completion which is then signed
and delivered to your lender of choice.
© Copyright All Reverse Mortgage Company | Phone (800) 565-1722

15. Other considerations
Even though reverse mortgages do not affect public benefits
such as Social Security and Medicare, the cash proceeds can
impact eligibility for those who are receiving “needs based”
state or local assistance. This is not specific to a reverse
mortgage but as to any excess funds that could change the
qualifications on these types of programs. Like any mortgage it
pays to shop around.
Compare offers from both banks and brokers alike and don’t be
fooled by the common sales pitch “they’re all the same” or “we
service our own loans”. The fact of the matter is ALL reverse
mortgages carry the same safeguards, and there is only one
federally insured HECM so don’t settle for less money or higher
interest charges.
© Copyright All Reverse Mortgage Company | Phone (800) 565-1722

16. The experts at All Reverse
Mortgage® are here to help! If you
have a question about reverse
mortgages give us a call Toll Free (800)
565-1722
Created by Cliff Auerswald
www.allrmc.com
© Copyright All Reverse Mortgage Company | Phone (800) 565-1722