McCarthy Thielman Realty
McCarthy Thielman Realty
Brinda S. Thielman, Broker/Owner, McCarthy Thielman RealtyPhone: (602) 228-9194
Email: [email protected]

Reverse mortgage definition & considerations

by Brinda S. Thielman, Broker/Owner 02/19/2023

older couple sitting in their living room with agent discussing finances

When searching for funding in the real estate world, it’s crucial to understand each loan type and its definition. Reverse mortgage is one important term you may encounter when thinking about building equity in your home. But what does reverse mortgage mean?

What is a reverse mortgage?

A reverse mortgage refers to a loan type available to homeowners aged 62 or older, and permits them to turn their home equity into income without monthly mortgage payments. A reverse mortgage loan essentially lets you borrow money, nearly uninhibited, against the equity you’ve already invested in your home.

What is a home equity conversion mortgage or “HECM?”

There are several types of reverse mortgages to choose from, depending on a variety of factors. The most common form of reverse mortgage is the HECM. 

An HECM is also sometimes called a Federal Housing Administration (FHA) reverse mortgage, and is only available to those who meet FHA qualification requirements.

When to consider a reverse mortgage

To those who qualify, there can be definite advantages to a reverse mortgage. Reverse mortgage loans allow many homeowners the flexibility to supplement their income later in life and benefit from their investment in their homes. They can also be helpful in situations where significant costs, such as healthcare, necessitate a lump sum payment.

However, reverse mortgages don’t make sense for everyone. It’s best to find a trustworthy lender or loan program before considering this type of loan, and discuss your options with a trusted financial advisor. 

About the Author

Brinda S. Thielman, Broker/Owner

Hi! I'm Brinda Thielman. Thank you for your interest in exploring Arizona real estate with me.

As a native Arizonian, I have seen the growth in the “Valley of the Sun” first hand. With over 30 years in the real estate industry, I know how challenging and intimidating buying and selling a home can be. That's where I come in! When I started my real estate career, I quickly found I loved every aspect of the home buying and selling process, from touring a home, researching the best mortgage loan for my clients, new construction details and even the negotiation and closing process. 

In 2015, I help found McCarthy Thielman Realty, LLC. Today it is one of the leading boutique real estate firms specializing in North Phoenix real estate.

My mission is to help you accomplish your real estate goals and dreams - "I'll Lead You Home!"