Reverse Mortgage Loans are Available!
What if the key to a secure retirement was already in your pocket?
A Reverse Mortgage Can Unlock The Equity In Your Home
What are the benefits of a Reverse Mortgage?
From reducing or eliminating your monthly mortgage payments to covering life’s unexpected costs, a reverse mortgage offers the financial flexibility many retirees need. With a reverse mortgage, you can:
- Pay off an existing mortgage, monthly bills, or healthcare expenses to free up cash flow.
- Make home repairs or renovations that improve comfort and safety.
- Supplement retirement income by replacing taxable withdrawals with tax-free reverse mortgage proceeds.
- Set up a line of credit to handle emergencies or occasional expenses.
- Support loved ones by helping with major costs, such as a down payment on a new home or college tuition.
How do you qualify?
To be eligible for a reverse mortgage, you must:
- Be at least 62 years old (your spouse may be younger if they are a non-borrowing spouse).
- Own and live in the home as your primary residence.
- Complete a financial assessment to confirm that a reverse mortgage is a sustainable option for your retirement.
- Participate in independent counseling with a HUD-approved advisor to ensure you fully understand the program and your responsibilities.
- Continue to maintain the home and keep current with property taxes, homeowners insurance, HOA dues, and any other required fees.
How much money could you qualify for?
Your loan amount is determined by these key factors:
- Age: The age of the youngest borrower or non-borrowing spouse. Generally, the older you are, the higher the potential loan amount.
- Home Value: An appraisal determines your home’s value. Higher home values can increase your available equity and loan potential.
- Current Interest Rate: Both fixed and adjustable rate options* are available. Lower interest rates typically allow for a larger loan amount.
* If you have a line of credit as part of your reverse mortgage, any unused portion grows each month. The growth rate equals the loan’s interest rate plus the annual mortgage insurance premium, increasing the funds available for future use.
How can you access your funds?
Choose the payout plan that works best for you:
- LUMP SUM PAYOUT – Maximize your cash payout
- LINE OF CREDIT1 – Use as needed, interest charges only on the portion you access
- MONTHLY INCOME STREAM – Receive monthly payments for a fixed term or monthly payouts for life2
- COMBINATION PLANS – Combine options for even greater control
1 Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages.
2 As long as the borrower does not default on the loan. Borrower must maintain home as a principle residence, pay all taxes, insurance, maintenance, and comply with all other loan terms.
Simplifying The Reverse Mortgage Process
We have broken down the reverse mortgage process into just a few simple steps. Once we confirm that this is the right solution for you, our team will guide you through:
- The Application Process
- Completing independent counseling with a HUD-approved advisor
- Getting your home appraised to confirm its value
- Closing on your loan and receiving your funds
When you work with PJMC, you will have direct access to an experienced reverse mortgage consultant who’s always available to walk you through the process and answer your questions—whenever you need support.
What Is A Reverse Mortgage?
A reverse mortgage is a powerful option designed for homeowners age 62 or older. It allows you to convert a portion of your home’s equity into loan proceeds, providing access to income tax–free funds* without the burden of monthly mortgage payments.
Best of all, you continue to own your home and keep your name on the title, as long as you:
- Live in the home as your primary residence
- Stay current on property taxes and homeowners insurance
- Properly maintain the home in line with Federal Housing Administration (FHA) requirements
* Consult a financial advisor and appropriate government agencies for any effect on taxes or government benefits.
MYTH vs. FACT
Common Misconceptions About Reverse Mortgages
MYTH: Reverse mortgages should only be a last resort.
FACT: Today, reverse mortgages are recognized as a smart retirement strategy. They can be used to pay off a mortgage, delay Social Security, fund long-term care, or create a line of credit. Many financial planners now include them in retirement plans.
MYTH: Reverse mortgages are too expensive.
FACT: Costs are often comparable to traditional mortgages. Yes, there are FHA insurance fees, but most closing costs can be rolled into the loan—meaning very little out of pocket.
MYTH: Reverse mortgage lenders just want my house.
FACT: We do not want your home—we want you to stay in it. As long as you meet loan terms, you can live there as long as you like. If you decide to move or sell, only then does the loan come due.
MYTH: I’ll have to make monthly mortgage payments.
FACT: Reverse mortgages do not require monthly mortgage payments. You choose if, when, and how much you want to pay. The only obligations are to keep up with property taxes, homeowners insurance, and home maintenance.
MYTH: The bank takes ownership of my home.
FACT: That is not true. With a reverse mortgage through Perry Johnson Mortgage Company, you keep full ownership of your home’s title. The lender only has a lien for the amount borrowed—just like any traditional mortgage.
MYTH: My heirs will be stuck paying off the loan.
FACT: Reverse mortgages are non-recourse loans. That means repayment only comes from the sale of the home. Even if the value drops, your heirs never owe more than the home is worth. They can keep the home by paying off the balance, sell it and keep the remaining equity, or simply walk away.
MYTH: I have to own my home “free and clear” to qualify.
FACT: Not at all. You can still qualify if you have an existing mortgage as long as there is enough equity. In fact, many clients use a reverse mortgage to pay off their current mortgage, eliminating monthly payments and freeing up cash.
MYTH: I will not have anything left to leave my family.
FACT: While the loan balance does grow over time, your home’s value may also appreciate. After the reverse mortgage is repaid, any remaining equity goes directly to your heirs.
MYTH: If I get a reverse mortgage, I cannot sell my home.
FACT: You absolutely can. A reverse mortgage works like any other loan—if you sell, the balance is paid off at closing. There are no penalties for early repayment.
MYTH: If my loan is sold, the terms can change.
FACT: Your loan terms are locked in at closing and protected by law. Even if your lender changes, your agreement does not.
