What does your ideal retirement look like? Maybe it’s more time with family and friends, a dream vacation or renovation, or helping your grandkids with college tuition. Whatever your goals, your home equity can help you fund it—and a reverse mortgage can help you access it.
Once viewed as a last resort, today’s reverse mortgages are flexible financial tools that can strengthen your retirement plan. And the more home equity you have, the more funds you can access—all without tapping into your retirement savings or taking on a new monthly mortgage payment (borrowers must meet all loan obligations including keeping up with property taxes, homeowners insurance, and home maintenance).
Your Home: A Hidden Source of Stability
Market volatility can make it tough to rely solely on your investments for retirement income. When markets dip, the instinct might be to sell investments to cover expenses—but selling at a loss can set you back. Instead, you can opt for accessing your home equity with a reverse mortgage.
That’s why financial planners increasingly recognize the value of reverse mortgages as part of a comprehensive retirement strategy. Some financial advisors recommend retirees establish a reverse mortgage early in retirement—so it’s available during market downturns.1 Other financial planning scholars consider a reverse mortgage “a secondary source of cash” that can help reduce financial risk.2
Considering how much equity today’s older homeowners have, it’s surprising that more people don’t take advantage of it. In fact, homeowners age 62 and older hold nearly $14 trillion in housing wealth!3
If you’re a part of this cohort, you can access a portion of that wealth with a reverse mortgage in your toolkit—using your funds when and how you choose.
Exploring Reverse Mortgages
The most common type of reverse mortgage is the Home Equity Conversion Mortgage (HECM), insured by the Federal Housing Administration (FHA). The FHA sets lending limits for HECM loans, meaning you can only borrow up to a certain amount. But what if you own a high-value home or condo? That’s where proprietary reverse mortgages—like Platinum by Longbridge—come in.
While a HECM is great reverse mortgage option for many homeowners, it doesn’t fit the bill for everyone. Platinum gives qualified borrowers age 55 and older4 the power to access up to $4 million5 in equity—well beyond the HECM lending limit.
It’s a flexible alternative that can be tailored to your unique goals. Whether you’re looking to maximize your cash for today with a lump sum, create a safety net for tomorrow with a line of credit,6 or preserve some equity for the future, there is a Platinum option available to support your plans.
Platinum and Beyond
When people think of tapping into their home’s equity, a traditional home equity line of credit (HELOC) often comes to mind. Fortunately, there are alternative options built with older homeowners in mind.
With a Platinum reverse mortgage, you have the option to access your funds as a line of credit, making it similar to a traditional HELOC—with several distinct, senior-friendly advantages:
- Lower costs and easier qualification – Platinum offers competitive rates, lower upfront costs, and simpler qualification requirements.
- No mandatory monthly payments – Unlike a traditional HELOC, Platinum doesn’t require monthly mortgage payments.7
- Predictable, long-term flexibility – Most traditional HELOCs are interest-only at first, then switch to fully amortizing payments after 10 years—often creating a sudden payment spike that can be difficult to manage on a fixed income.
- Built-in protections – Platinum includes borrower safeguards that HELOCs don’t, such as:
- Non-recourse protection, meaning neither you nor your heirs will owe more than the home’s value when the loan is repaid.
- Independent counseling to ensure you fully understand your options and obligations before moving forward.
HELOC For Seniors® is another alternative to a traditional HELOC. The first and only HELOC designed specifically for seniors, HELOC For Seniors® can give you the cash—and the options—you need, with features tailored to your unique financial situation.
Ways to Use Reverse Mortgage Funds
At the end of the day, both HECM and Platinum reverse mortgages give you options. From how you receive your funds to how you use them, the ball is in your court when it comes to customizing your loan to your lifestyle. Let’s take a look at just a few of the virtually endless ways you can put your reverse mortgage funds to work for you:
- Make renovations. Most older adults want to remain in their current homes as long as possible. Reverse mortgage funds can be used to make modifications—like accessibility features or even a dream kitchen—to make that easier.
- Fund rising healthcare expenses. Seemingly ever-increasing healthcare costs can be hard to keep up with—and just as hard to plan for. Funds from a reverse mortgage can help ease the burden.
- Buy a new home. It’s not too good to be true! If your current home no longer meets your needs, a reverse mortgage can help you move into a new one—without adding monthly payments.7
- Help your family. Supporting your loved ones’ education or contributing to a down payment on their new home purchase is a meaningful legacy that lasts generations.
- Consolidate high-interest debt. Use the proceeds to consolidate other payments—like credit cards or medical debt—so you can focus on what matters most.
- Enjoy the retirement you’ve earned. Whether it’s traveling, pursuing your hobbies, or simply living more carefree, your home equity can help make it happen responsibly.
- Set up a financial safety net. Having a reverse mortgage line of credit in place can give you a ready source of funds to draw from when markets are down or unexpected expenses arise.
A reverse mortgage can give you the funds you need for a better life. Your home has done a lot for you over the years, why not let it do a little more?
To explore your options and find out how much home equity you could access, contact the Longbridge team today.