Here are some numbers that might surprise you:
- In 2024, seniors 62+ held a record-breaking $14 trillion in home equity.
- Despite that, many are turning to reverse mortgages, adding new debt in retirement.
- The average reverse mortgage loan amount is $120,000-$150,000, with high fees and interest rates between 5%–6%.
- Miss a property tax payment? You could lose your home — nearly 1 in 10 borrowers face foreclosure due to technical default.
If you’re a retiree or approaching retirement, chances are you’ve seen ads for reverse mortgages promising "financial freedom." What they don't show is the fine print that could leave you or your family in financial quicksand. Sure, it might seem like easy money, but that cash comes with strings — and interest — attached.
The Ugly Truth About Reverse Mortgages
Reverse mortgages let you pull money from your home equity, but it's not free cash. It’s a loan. A loan that grows over time with compounding interests, that you or your heirs have to deal with later.
Here are just a few of the red flags:
- Mounting Debt: Interest piles up monthly, making the loan bigger every year.
- Fees, Fees, Fees: From origination to closing costs, you’re paying thousands just to borrow your own equity.
- Foreclosure Risk: Miss your property taxes or let your insurance lapse, and you could lose the roof over your head.
- Bye-Bye Inheritance: Your kids might inherit just memories and maybe even debt.
But you still want to use the equity you have in your house, right? Is there a solution? Yes! It's called a leaseback.
A leaseback is a very useful financial tool. It allows you to sell your house to a buyer with the condition that you stay in it as a renter:
By doing this you get to use all the invested equity in your house to do whatever you want. But not only that you also get all the financial benefits of becoming a renter.
- You don't pay expensive mortgages with high interest rates
- You no longer have to do repairs
- No more property taxes
- No HOA fees
- And cheaper insurance
Now, as you might have guessed at Sell2Rent we offer leasebacks. We have devoted decades to become the best at leasebacks and make it work for our clients. So if you are looking for a reverse mortgage we would like to invite you to check out our website first and avoid a massive mistake. These are just some benefits of working with us:
- Debt-Free Cashout: You get your money upfront without adding a loan to your life.
- Stay Put: You don’t have to leave your neighborhood, your doctor, or your grandkids.
- No Loan Sharks Here: Unlike reverse mortgages, there’s no compounding interest creeping up on you.
- Heirs Breathe Easier: You’ve unlocked your equity without creating a mess for your family to clean up.
Let's Be Real for a Second... You’ve worked your whole life to build up the equity in your home. Why risk it on a reverse mortgage that eats it away with fees and growing debt? Sell2Rent gives you a way to cash out and stay put, no strings (or loans) attached.
It’s time to rethink retirement finance. Reverse mortgages may look appealing, but they're just debt in disguise. With Sell2Rent, you can keep your freedom, your cash, and your peace of mind.
Because retirement should be about living, not loaning.
Comments