Open weekdays 9 to 5
A Reverse Mortgage, Explained Plainly
Including the parts others skip. We sit with you and your family, show the real costs, and tell you when it is not a fit.
Three Rules That Never Change
Every HECM reverse mortgage comes with these. We say them first, not in small print.
- You must meet with a HUD approved counselor first.The counselor works for an independent agency, not for us. It usually takes about an hour by phone.
- You keep paying property taxes, insurance and upkeep.Miss them and the loan can come due. In Florida that includes wind and flood insurance where it applies.
- The loan comes due when the last borrower leaves the home.That means a sale, a move or passing away. Being away more than 12 months in a row, like in a care home, counts too.
HECM Explainer
Three numbers give a rough idea of what a HECM could do for you. This is an estimate for learning, not a quote.
Rough principal limit Estimate
- Principal limit range
- Pays off your current mortgage
- Upfront costs, rolled into the loan
- Left for you to use
What the Money Can Do
Before You Go Further
- HUD approved counseling is required before you apply.
- You keep paying property taxes, homeowners insurance and upkeep.
- The loan comes due when the last borrower leaves the home.
- The balance grows over time as interest and insurance are added.
What Happens for Your Kids
When the last borrower leaves the home, your heirs get a letter and time to decide. They have about six months, and they can ask for more time.
- Keep the housePay off the loan balance or 95 percent of the appraised value, whichever is less, often with their own mortgage.
- Sell the housePay off the loan from the sale and keep whatever is left over.
- Hand over the keysIf the home is worth less than the balance, they can sign it over. They do not owe the difference.
What It Costs, in Plain Numbers
A reverse mortgage costs more up front than a regular loan. Here is every piece, before you ask.
| Cost | How much |
|---|---|
| FHA mortgage insurance, up front | 2% of the home value, up to the national limit |
| FHA mortgage insurance, yearly | 0.5% of the balance, added to the loan |
| Origination fee | Set by the lender, capped by HUD at $6,000 |
| Appraisal, title and recording | Often $2,500 to $4,000 in Charlotte County |
| Interest | Added to the balance each month, not paid by you |
What Families Say
She told us about the costs before we asked. Then she told us to sleep on it for a week.
Barbara L. Punta Gorda
My son sat in on every meeting. He knows exactly what happens with the house later.
Walt K. Port Charlotte
No more mortgage payment. We still pay the taxes and insurance, and we knew that from day one.
Rosa and Dave M. North Port
Sample reviews written for this demo. Your site shows your real Google reviews, word for word.
Questions We Hear Every Week
Will the lender own my house?
No. You keep the title and you stay the owner. The loan is a lien on the home, like a regular mortgage. You must keep living there as your main home and keep up the taxes, insurance and repairs.
Can I owe more than my house is worth?
A HECM is a non recourse loan. When the home is sold to repay it, neither you nor your heirs owe more than the home sells for, as long as it is sold for fair market value. FHA insurance covers any gap.
What if my spouse is younger than 62?
A spouse under 62 can be listed as an eligible non borrowing spouse. If they meet the rules, they may stay in the home after the borrower dies, though they cannot draw more money. The amount you can borrow is based on the younger age.
Does a reverse mortgage affect Social Security or Medicare?
Not usually. Money from a reverse mortgage is loan proceeds, not income. Needs based benefits like Medicaid or SSI can be affected if you hold the money in the bank past the month you get it. Ask a benefits counselor about your own case.
What if a hurricane damages the house?
You file with your homeowners or flood insurance like anyone else. Keeping that insurance paid is one of the rules of the loan. Repair money often goes through the loan servicer, who releases it as work gets done.
Where We Visit
We come to your home anywhere in Charlotte County and nearby Sarasota and DeSoto towns.
Talk It Over, No Pressure
Open weekdays 9 to 5. We are happy to meet with your kids on the call too.