Reverse Mortgage Misconceptions That Could Be Holding You Back!

Have you ever considered a reverse mortgage or HECM (Home Equity Conversion Mortgage) but heard some myths that may be keeping you from investigating it further?

You’re not alone!

Today’s reverse mortgage has evolved into a retirement strategy*. Holly Revenig, Certified Reverse Mortgage Specialist with Finance of America Mortgage LLC stated, “The reverse mortgage of old is like comparing an 80’s brick phone to today’s smartphone. The biggest misconceptions are that you don’t own your home, and you can get kicked out of your home at any time.”

Before turning your back on a reverse mortgage, Revenig recommends educating yourself about what a reverse mortgage really is and what it isn’t. Revenig outlines key non-negotiables when considering this retirement strategy:

  • The home must be your principal residence.
  • You are responsible for paying your property taxes, homeowner’s insurance, and HOA in a timely manner.
  • At least one borrower must be 62 or older to qualify.
  • You will need roughly 50% of the home’s value as your equity contribution.
  • There is an up front 2% mortgage insurance premium. This makes the HECM a non-recourse loan, which protects you and your heirs from owing more than the value of the home.

Peace of Mind

The key benefits of the reverse mortgage are its flexibility and multi-faceted applications which provide borrowers with financial peace of mind. Revenig goes on to say, “This is what the industry calls the Swiss Army knife of financial products. There are so many wonderful uses for different retirement scenarios. For example, let’s say you sell your home in California for $800,000 and you want to buy a home in Rimrock, Arizona, for $400,000. Rather than paying cash for the home, you could put half down and eliminate your mortgage payment. This could free up your cash for a second home, or that RV you’ve always dreamed of.”

Hold off on Applying for Social Security

Reverse mortgages can also be used to delay filing for social security. For example, your social security matures when you turn 70. Instead of filing early and getting a smaller amount every month for the rest of your life, you can set up a reverse mortgage which eliminates your monthly mortgage payment and can enable you to hold off until your social security matures. So rather than being cash-poor, you can have cash flow!

Revenig says, “It’s really a great option that doesn’t get the attention it should. Once my clients understand the benefits, you can just see the wheels in their heads turning with all the possibilities. I love being a part of giving retirees back their financial freedom.”

A Fresh Outlook on Reverse Mortgages

A reverse mortgage can change your outlook on retirement and is a secured loan. The reverse mortgage of HECM is a government-insured FHA HUD loan and the fixed interest rates are competitive with a traditional mortgage. To determine whether this type of financing might be a good option for your next home, speak with a Brown Homes community representative or contact Holly Revenig directly.

Holly Revenig is a Certified Reverse Mortgage Specialist (NMLS 1837189). She can be reached at 602.625.4855 or via email at

*Consult your financial advisor or retirement specialist before making any financial decisions. Brown Homes does not endorse any specific financial or investment strategies, programs or companies. Not all buyers will qualify for the program(s) mentioned above. Contact a Brown Homes representative for complete details.