New Mexico Reverse Mortgage

The New Mexico reverse mortgage option is one of the most effective financial  tools available to seniors and retirees who need to secure a steady stream of income to live on during the best years of their lives.  If you own a home and you’ve built some equity in it, you’re likely qualified to take advantage of this specialized loan option.

Reverse Mortgage New Mexico Information

These loans are designed to transform equity into income.  This is their basic function.  Seniors who take out reverse mortgages in New Mexico are able to live well without giving up their home ownership rights.  The additional income these loans provide has allowed many retirees to pay for medical costs, bills, taxes, and living expenses with ease.

The money you receive is your money.  It comes directly from your home equity.  There are no stipulations as to how it can be spent.  Read through our reverse mortgage information fact sheet for information on the benefits reverse mortgage provide.

Your lender will take ownership of the equity and provide you an equivalent amount of spendable income, minus fees.  You can choose to receive this money in a number of ways.

• Your lender can deliver all of it to you as a lump sum when the loan closes.
• You can get it in segments or portions on a monthly basis until the equity is depleted.
• You can establish a line of credit with your lender that taps the equity whenever you need it.

You can also combine any of the above options to create the payment method that best meets your needs.

Once your lender has taken control of your equity, you will begin receiving your funds.  Many seniors are hesitant to take this step out of fear that lenders will repossess their homes once the equity is fully expended.  This is not the case.  The title or deed to your home remains in your name at all times during and after the reverse mortgage process.  Your lender will never own your home.  You are free to continue living in it as long as you like.

Upon your death, your home will pass to an heir.  This heir becomes responsible for paying back your reverse mortgage debt.  But you don’t need to worry about sticking your children with the loan.  The mortgage amount is tied to the home itself.  If your home decreases in value, the repayable loan amount decreases as well.  This ensures that your heir can sell the home and pay off the debt in full.  The only negative aspect of this transaction is that your heirs won’t be able to keep your home unless they choose to refinance and pay off the debt themselves.

Either way, your financial independence is maintained.  You can learn more about your options by reading the HUD’s Frequently Asked Questions page or contacting a lender in our network.

New Mexico Reverse Mortgage Lenders

Taking out a reverse mortgage is simple and affordable if you find the right lender.  If not, you may end up paying a lot of money for the right to access your own equity.  Try to avoid this at all costs.  Research as many lenders as possible in your part of New Mexico and ask them what mortgage rates and closing fees they charge.  Find the most affordable lender to work with.  This comparison is essential if you want to get the best deal on your loan.

You can also learn more about applying for a reverse mortgage by checking out our reverse mortgage checklist.

About New Mexico

New Mexico has a strong Spanish, Mexican, and Native American culture, since the state has the highest percentage of Hispanics of any state in the country.  Government spending is a major impact in New Mexico's economy.  It is the biggest employer in the state. Many of the jobs are related to the military.

In the state of New Mexico, the "Aging Network," funded by New Mexico's Older Americans Act, is one of several resources available to seniors.  Albuquerque and Santa Fe are the two primary cities in New Mexico and are home to many retirees.  Reverse mortgages are a solid financial option available to senior homeowners in New Mexico.

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