Use the equity in your home to create the retirement you want

Reverse home mortgages can be another tool in your financial planning toolbox

A reverse mortgage can open up the equity in your home for you to use, without straining your budget, explains Ruth Gillis, a mortgage broker with One Trust Home Loans in Everett, who’s been working with reverse home loans since 2007. Photo courtesy One Trust Home Loans

A reverse mortgage can open up the equity in your home for you to use, without straining your budget, explains Ruth Gillis, a mortgage broker with One Trust Home Loans in Everett, who’s been working with reverse home loans since 2007. Photo courtesy One Trust Home Loans

If you’ve lived in your home for more than a few years, you’ve likely built a life that includes many fond memories, neighborhood friends and a comfortable familiarity that makes this the place where you want to spend your retirement. You’ve likely built equity in your home at the same time.

So what happens if your retirement income isn’t enough to sustain your home and the lifestyle you’re hoping for? Or perhaps you prefer to age in place, but will need home care. This is where a reverse home mortgage can offer the perfect solution.

Today’s reverse home loans come in a variety of flexible options and address some of the misunderstandings of previous versions. For example, you remain the owner of your home, emphasizes Ruth Gillis, a mortgage broker with OneTrust Home Loans here in Everett, who’s been working with reverse home loans since 2007.

“In fact, you have a lot more control – one of the reasons we’re working more with financial planners and elder law attorneys,” Gillis says, noting the strict guidelines that govern mortgages of all kinds, including reverse mortgages.

Essentially, a reverse mortgage “opens up the equity in your home for you to use, without creating a strain on your budget. It’s for planning a better retirement,” Gillis says, recalling one couple who used the option to ensure the wife could stay in the home in the event of her husband’s death.

“He’d had a heart attack and she desperately wanted to stay in the home. Now she’s paid off her original mortgage and she’s still in her little home in Everett. I love that story,” Gillis says.

Another woman wanted to enjoy a better lifestyle in retirement than her savings and pension would allow, and leveraging the equity in her home allowed her to do that.

“There are many reasons why a reverse home mortgage can be a good option for someone. It’s another tool in your financial planning toolbox.”

How does a reverse home mortgage work?

While every person is different, Gillis shares some general guidelines about a reverse home mortgage with OneTrust Home Loans, a Direct Mortgage Lender:

  • A person can become eligible for a reverse home mortgage at age 62, but the amount you can receive will vary according to your age, home value and amount of equity in your home.
  • Payments on the reverse mortgage are optional, but the property must be owner-occupied, and you must pay your property taxes and home insurance.
  • The loan becomes due within six months after the death of the individual, or the surviving spouse, in the case of a couple. Beneficiaries have the option of paying off the loan and retaining the home, but typically the home is sold and any remaining equity after the loan is paid off would be dispersed according to the estate. Two 90-day extensions are available if the estate remains in probate or the house hasn’t sold.

To learn more about the possibilities for your retirement, contact Ruth Gillis, NMLS #422726, at or call 425-319-3493.

The news and editorial staff of Sound Publishing, Inc. had no role in the preparation of this post. The views and opinions expressed in this sponsored post are those of the advertiser and do not reflect those of Sound Publishing, Inc.

Sound Publishing, Inc. does not accept liability for any loss or damages caused by the use of any products, nor do we endorse any products posted in our Marketplace.

More in Local Marketplace

APEX Art and Culture Center's elegant 16Eleven resturant is the perfect place for an intimate date night.
Celebrate in style this holiday season at the historic APEX Art & Culture Center

History meets the 21st century at this unparalleled Everett venue

The Seattle Christmas Market is the perfect place to celebrate the magic of the holiday season. Seattle Christmas Market photo
Month-long celebration of holiday magic opens at Seattle Center Nov. 24

The first-ever Seattle Christmas Market is coming to town

The Lake Stevens High School Jazz Choir will be one of many performers at this year’s Providence General Foundation’s Community Day & Teddy Bear Celebration, taking place Wednesday, Nov. 29 - 1 p.m. to 6 p.m. at the Tulalip Resort. Everyone is invited to this free event!
Unwrap Joy: Festival of Trees 2023 Free Community Day & Teddy Bear Celebration Kickstarts the Holidays

Head to Tulalip Resort on Nov. 29 for a day of holiday magic - crafts, Santa visits+Festival trees!

Residents at Quail Park at Lynnwood are getting ready to welcome friends and family for the holiday season. Photos courtesy Quail Park of Lynnwood
Make memories this holiday season – and let someone else do the cooking!

Lynnwood seniors’ residence welcomes families for memorable seasonal celebrations

While fraudsters are working overtime at this time of year, the good news is that some simple steps can keep you and your hard-earned money safe. Courtesy Peoples Bank
Don’t let scammers dim the sparkle of your holiday season

Peoples Bank shares how to prevent becoming the victim of fraud during the holidays and year-round

Everett contractor Darryl Stump founded JHB Construction with a commitment to quality and customer service, and his team has been fulfilling that mission for 25 years.
Everett contractors build a foundation of success, one renovation at a time

Construction and renovation pros mark 25 years with expansion to north Everett area

Cindy Gobel with her supporters.
‘Integrity and true leadership:’ Auditor candidate emphasizes election transparency and accessibility

Snohomish County Auditor candidate understands the value and strength of community

Nathan Coons will tailor your needs for renovations for residential homes. Photo courtesy of Coons Construction.
All in the details: Lynnwood contractor shares passion for client-focused projects

Green building methods, planning and clear communication are key for clients

Centrum’s visiting artists Courtney Desiree Morris, left, and Dakota Camacho will be offering public talks this month. Photos courtesy Centrum
Centrum’s Emerging Artist Residency Program Celebrates 10 years

Centrum is pleased to announce its 10th year of the Emerging Artist… Continue reading

Cynthia Nava with her dog, Trigger. Her mission is to reassure people that Medicare options don’t have to be scary. Photo courtesy of Cynthia Nava.
‘I make Medicare simple!’ Signing up for Medicare doesn’t have to be scary

Snohomish County Broker empowers and simplifies Medicare open enrollment for seniors

At the Y, connections and friendships are built every day. It’s at the heart of everything the Y does in the community. Photo courtesy YMCA of Snohomish County
YMCA of Snohomish County combats social isolation epidemic

The United States is facing a social isolation epidemic. At a national… Continue reading

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.