Latest news with #senior homeowners
CBS News
22-07-2025
- Business
- CBS News
Best reverse mortgage lenders, plus top advice homeowners should know now
As retirement approaches, many homeowners find themselves asset-rich but cash-poor, with significant equity tied up in their homes while facing reduced income streams. And, that's especially true in today's inflationary environment, which is causing the costs of just about everything to rise, making it more difficult for retirees to ensure that their retirement funds will last as long as they need them to. In turn, senior homeowners are increasingly exploring the benefits of reverse mortgages, as these specialized loans allow them to tap into their home equity without the burden of monthly payments. The reverse mortgage landscape has evolved considerably in recent years, though, with both government-backed Home Equity Conversion Mortgages (HECMs) and private proprietary programs offering different advantages to qualified borrowers. And, as with any other type of borrowing product, not all reverse mortgage lenders offer the same terms, rates or level of service. So, if you're planning to take out a reverse mortgage, knowing which lenders excel in which areas can help you maximize the benefits while minimizing potential risks associated with these complex financial products. To help you get started, we've outlined a few standout reverse mortgage lenders below. We've organized them by what sets them apart so you can match a lender to your unique situation and goals. Start exploring your top reverse mortgage lenders here today. Here are some of the best reverse mortgage lenders broken down into five categories: Longbridge Financial is ideal for budget-conscious borrowers who are seeking a reverse mortgage with minimal upfront costs. It consistently offers some of the lowest interest rates in the industry and waives monthly servicing fees for many borrowers, which can help borrowers save significantly over the life of the loan. Longbridge also acts as its own loan servicer, ensuring you'll deal with the same company from application through repayment. This continuity can be a huge advantage if you want to avoid the confusion that comes when servicing rights are transferred to a third party. Plus, the lender provides an impressive library of educational resources, making it a great fit for first-time reverse mortgage borrowers who want to fully understand their options. Find out more about Longbridge here. American Advisors Group (AAG), which was recently acquired by Finance of America, is a dominant player in the reverse mortgage space, offering a wide range of federally insured HECMs as well as proprietary jumbo loans for high-value homes. This variety makes it an attractive choice for homeowners with different needs, whether they want a traditional HECM or need to access more equity than FHA limits allow. AAG also provides tailored options for receiving funds, including lump sums, monthly payouts and lines of credit, giving retirees flexibility to structure their loans in a way that fits their financial plans. Both AAG and FOA's strong reputations for customer service and AAG's extensive educational materials make this lender particularly appealing for those seeking a highly customizable experience. Guild Mortgage stands out for its ability to work with borrowers in unique situations, making it a strong option for homeowners who may not fit the traditional reverse mortgage mold or those looking for larger loan amounts than they could otherwise qualify for. That's because, alongside standard HECM loans, Guild offers proprietary reverse mortgage products designed for higher-value homes and borrowers looking for larger loan amounts than federal limits allow. That flexibility makes Guild an excellent choice for retirees with significant home equity or non-standard property types. The lender also provides multiple disbursement options, including lump sums, lines of credit and monthly payouts, so you can tailor your reverse mortgage to meet your financial goals. Fairway combines a national presence with the personalized touch of local branches, offering reverse mortgage options backed by high customer satisfaction ratings on third-party review sites. As a result, this lender may be particularly appealing for borrowers who prefer face-to-face lender interactions and hands-on guidance throughout the process. Fairway also has a highly rated mobile app for managing the reverse loans it issues, which bridges the gap between in-person service and digital convenience. One potential drawback is that Fairway may transfer loan servicing after closing, so if keeping your loan under one roof is a priority, you may want to ask about this up front. Find out more about Fairway here. Unlike direct lenders, Northwest Reverse Mortgage operates as a broker, connecting borrowers with multiple lenders and a wide range of products. This approach allows you to compare rates, terms, and fees across several options without doing all the legwork yourself. Northwest is especially useful if you're shopping for jumbo reverse mortgages or niche loan types like HECM for Purchase. However, Northwest's reverse mortgage services aren't available in all 50 states, so if you're interested in this lender, you'll need to confirm availability in your area. For homeowners who want a one-stop shop for exploring multiple offers, though, Northwest may offer a flexible, time-saving solution. While a reverse mortgage can be a smart way to cover your expenses during retirement, it's important to approach this type of borrowing carefully. Here's how you can do that: Reverse mortgages can unlock vital funds for retirement, but only if they align with your future plans and you find the right lending partner. So, choose a lender that excels where you need it most, whether that's low cost, support, digital ease or broad options. Most importantly, stay informed about costs, eligibility rules and how the loan fits into your long-term financial picture so you can take advantage of the financial flexibility this borrowing option offers without compromising your home or other benefits.
CBS News
21-07-2025
- Business
- CBS News
Why a reverse mortgage makes sense for seniors this July
A reverse mortgage isn't available for every homeowner. Typically, you'll need to be age 62 or older to qualify, leaving this option available mostly for senior homeowners. But if you meet the age requirements and some other criteria, this unique funding source could be worth exploring, particularly in the unique economic landscape of July 2025. With a reverse mortgage, lenders will pay homeowners out of their accumulated home equity, either in a lump sum or via monthly payments. This money will only need to be repaid in the event of the death of the homeowner or if the home in question is sold. Otherwise, homeowners can comfortably rely on these payments being made back to them, providing a much-needed financial cushion right now. And while the benefits of a reverse mortgage can often be timeless and applicable in a variety of scenarios, there are some timely reasons why it can be particularly beneficial for seniors this July. Below, we'll examine three of those reasons. Start by checking your reverse mortgage eligibility criteria online today. Not sure if a reverse mortgage could be the right move for your finances this July? Here's why it could be: Whether you're currently dealing with issues related to Social Security overpayments and clawbacks or are simply concerned about the system running out of funding in the future, a reverse mortgage can adequately fill the gaps left by Social Security each month. This additional monthly income stream can be the difference between covering all of your bills and expenses or not. With a reverse mortgage, you won't need to cut as many corners or try to squeeze as much as you can out of retirement funds and Social Security. And with inflation rising again in June and rates on loans and borrowing products remaining elevated, an additional income stream is particularly helpful to have this July. See how much you could get each month with a reverse mortgage here. Unlike a home equity loan, which also uses the home as a funding source, homeowners won't be responsible for making monthly repayments right after the funds are disbursed. They won't be required to make repayments at all, as equity taken with a reverse mortgage will simply be replenished upon the sale of the home. This is a major advantage this July, as it eliminates the stress (and calculations) required when calculating interest rates and repayments on items like home equity loans and home equity lines of credit (HELOCs). The average home equity amount sits over $300,000 right now, and if you're a senior living in a paid-off home, you may find yourself with even more money to borrow from. Qualifying, then, could be easier compared to trying to secure a six-figure credit card line or a $100,000 personal loan, for example. Lenders can easily determine your home's worth and, thus, the amount you can secure with a reverse mortgage. And a simple qualification is always beneficial, but especially this July when the need for additional funds, thanks to inflation, interest rates and stock market uncertainty, is elevated. A reverse mortgage isn't a one-size-fits-all solution for seniors, but the benefits of pursuing one can be broadly applicable in the economic climate of July 2025. With the ability to fill in gaps left over from Social Security payments, no concerns over repayments (and interest rates) in today's elevated rate climate and relative ease of qualification compared to alternative funding sources, a reverse mortgage could be the solution to your financial problems both this month and in the future.
