Reverse Mortgages Simplified – Closing the Financial Gap for a New Generation of Retirees

By Tony Lopes, Reverse Mortgage Specialist, Reverse Mortgage Funding LLC (RMF)

Retirement has become a bit more complicated in recent years. Retirees can no longer rely on just Social Security, employer-sponsored retirement plans, and personal savings – what’s known as the “three-legged stool” of retirement planning. Many of today’s retirees simply do not have the employer-sponsored plans their parents did, and therefore need to rely more closely on personal savings and other assets to close the gap and meet their financial needs. Additionally, with increased longevity and medical expenses, planning for the unknown is difficult. That’s why Home Equity Conversion Mortgages (HECMs) are growing in popularity.

If you’re 62 or older, an HECM can help you tap into the equity of your existing home and turn it into cash that can be used today or a line of credit that will be there when you need it. It also can help to persevere invested assets, leaving them intact to continue earning for you.

In short, an HECM can give you more power to live better. Do you want to make some needed or desired home improvements? Get additional funds to help cover unexpected medical costs or supplement your income? An HECM can help by eliminating your existing mortgage payment and freeing up cash to use for those purposes and others. (As the homeowner, you’d remain responsible for property taxes, homeowner’s insurance, and property maintenance. An HECM is a home-secured debt payable upon default or a maturity event.)

You can receive your loan funds as a lump sum, a line of credit, a monthly payment, or any combination of these. (If you elect a fixed-rate loan, you will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages.)

The HECM loan program was created by the Federal Housing Administration specifically for homeowners age 62 and older, and has been growing in popularity. Today, many consumers and their financial advisors view HECMs, in the right circumstances, as a smart solution to help qualified homeowners achieve their retirement goals.

Over the coming weeks we will discuss recent changes to the HECM program that have made the program safer and less costly for seniors. We will also discuss common misconceptions and uses for HECM’s that seniors and financial advisors implement to improve quality of life in retirement.

Tony Lopes is an experienced HECM Loan Specialist with Reverse Mortgage Funding. Prior to originating loans, he spent 7 years as a HUD Approved Reverse Mortgage counselor. Tony is available at or 413-478-2013 to help educate borrowers and their families. Branch Address: 1325 Springfield St, Feeding Hills, MA 01030. NMLS # 1408098

Gove Law Office, LLC is a general practice law firm with offices in Northampton and Ludlow, MA. The firm handles  a wide variety of legal needs, including residential real estate matters. For more information, please contact Attorney Michael Gove at