Reverse Mortgages Aren't Just for the Financially Desperate

Mortgage and Lending with PS Mortgage Lending 305-791-4874 or 888-845-6630 365768

Reverse Mortgages Aren't Just for the Financially Desperate

"Aren't reverse mortgages just for people in trouble financially?"

It's a question I hear all the time and it's one of the biggest misconceptions about reverse mortgages.

Can homeowners 62 years of age and older, who live in their primary residence and have enough equity in their home, who are financially desperate apply for a reverse mortgage? Yes.

Is this the only to apply for a reverse mortgage? No, not in the slightest.

Depends on what you want to use your reverse mortgage for.

For example, if you live on a fixed income, and have created a budget for yourself during retirement, the reverse mortgage monthly tenure payments option is perfect for you. Tenure payments, or equal monthly installments for as long as the borrower lives in the home, exist to give homeowners extra cash flow every month but they are not for everyone because the payment amount does not change. If one month you need $200 extra and another you need $1000 extra, tenure payments are not for you.

That's the beauty of reverse mortgages, they adapt to the consumer's needs and personal situation. 

Aside from tenure payments, a reverse mortgage can also be used as a retirement planning tool, in the form of a line of credit. The flexibility available with the line of credit option is one of the reasons it continues to be popular among homeowners. It allows the homeowner to make unscheduled withdrawals depending on their necessity while the unused portion grows monthly depending on the interest rate. This option allows the homeowner the ability to control their available funds and, if the funds aren't needed, initially, the amount of available funds will continue to grow.

Retirement planning and saving continue to fall by the wayside even as the cautionary tales continue to come out of the wood work. It's time to consider what you need, or will need, in the future when you retire. 

Interested in a reverse mortgage program?

There are many options available to you with a reverse mortgage and plenty of ways to use it during retirement. Give PS Financial Services a call at (888) 845-6630 or email us at We do not pressure those who inquire, we're just here to help.

Click here for more information about the elimination of the reverse mortgage program as we know it:


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Information and content in this blog is original to Phil Stevenson

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Phil Stevenson

PS Financial Services

Owner and Principal Mortgage Originator

Certified Reverse Mortgage Professional (CRMP)

LO #365768

NMLS #968090

Cell: 888.845.6630

Miami Mortgages & Florida Mortgages

Copyright © 2013 by Phil Stevenson & PS Financial Services, LLC

Comments (6)

Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

Thank you for the information on Reverse Mortgages.  We need to get the info out to the public. 


Aug 21, 2013 12:58 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

You're welcome. Our blogs should be a source of information for our users, so it's up to us to keep it fresh and updated.

Aug 21, 2013 12:59 AM
Helen and Larry Prier- Re-Max Gateway - Residential Real Estate
RE-MAX Gateway- Residential Real Estate Sales - Anacortes, WA
Anacortes & surrounding Skagit & Island Counties

Phil, I like this type of information since I work in a large retirement area. 

Aug 21, 2013 01:44 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Helen & Larry, glad to be of service. Retirement savings, or lack thereof, is becoming an increasingly important problem so it's up to us to help out when we can.

Aug 21, 2013 01:51 AM
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Phil -- it could just be that they want to get rid of those pesky (expensive) mortgage payments, now that they are on fixed income.  It looks like FHA will be changing some of the options come October.  Will be interesting to see what they finalize on.

Aug 21, 2013 03:17 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Steven, that's the point I'm trying to make. There is a misconception that reverse mortgages are just for people struggling to pay their mortgage or various other payments during retirement. It's not. A line a credit is perfectly viable option for retirees who want to have an extra source of cash flow they can use whenever they need it. It's not just about how they will use it in the present but also what they will have available for the future.

Having said that, the reverse mortgage is flexible enough to adapt to situations (for now). The implications of the changes that are coming in October have yet to be seen. In the mean time all we can do is wait.

Aug 21, 2013 03:23 AM