Stephen ParnellNMLS #1595864

retirement mortgage speicialist - stephen parnell
Retirement Mortgage Specialist
  • I personally have a retirement mortgage
  • Have more than 37 years of mortgage experience
  • A retirement mortgage, is a valid option of financial planning and should be approached and/or set up long before it is needed (not when it’s too late and it’s your last resort). I want to enlighten you to the benefits of approaching this subject much earlier i.e. as soon as you approach 62 years of age.
Long History of Experience
  • 2017 Joint Founder of New Florida Mortgage
  • 1999 – 2010 CEO and Principal Broker of LynxBanc Mortgage Boca Raton
  • 1992 – 1999 Held multiple mortgage origination and management positions in Florida
  • 1992 Florida Mortgage Brokers License obtained
  • 1983 – 1991 Managing Director of LH Group mortgage brokerage in UK

Retirement Mortgage -V- Reverse MortgageDo You Know How to Tell the Difference?

Making the right choice is your key to financial security in your 60’s, 70’s and beyond.

If you have a question you may ask right here.

So, Just What is a Retirement Mortgage?

  1. Tool used by savvy homeowners as part of a comprehensive retirement plan
  2. Used properly, the retirement mortgage allows the homeowner flexibility to make a monthly mortgage payment, make no payment, or take annual distributions from an ever increasing line of credit
  3. Allows the homeowner to tap into equity in their home while always maintaining ownership of the home and never taking on the risk of the home being worth less than the mortgage amount (you must keep taxes and insurance current and must live in the home)
  4. Provides an opportunity to access equity for homeowners who have already retired and no longer have sufficient income to qualify for a forward mortgage
  5. Allows homeowners to acquire a line of credit before they need it. In this case the line of credit grows during the years you do not use it and can never be canceled.

With a federal insured retirement mortgage (HECM) you can never owe more than the value of your property – This protects your family and beneficiaries.

“I personally have a retirement mortgage because it gives me multiple financial options”

Frequently Asked Questions

What is a retirement mortgage?
  • Tool used by savvy homeowners as part of a comprehensive retirement plan.
  • Used properly, the retirement mortgage allows the homeowner flexibility to make a monthly mortgage payment, make no payment, or take annual distributions from an ever increasing line of credit.
  • Allows the homeowner to tap into equity in their home while always maintaining ownership of the home and never taking on the risk of the home being worth is than the value (must keep taxes and insurance current and must live in the home).
  • Provides an opportunity to access equity for some homeowners who have already retired and no longer have sufficient income to qualify for a forward mortgage.
  • Allows some homeowners to acquire a line of credit before they need it. In this case the line of credit grows during the years you do not use it.
What benefits does a retirement mortgage offer?

Flexibility

  • Easier qualifying process than a forward mortgage.
  • As part of a comprehensive retirement plan, can be used as a source of funds for home health care needs in the future.
Why a retirement mortgage should not be considered a “last resort"

It is much harder to acquire a reverse mortgage once you are in the “last resort” situation. There are Numerous advantages to having the retirement mortgage in place BEFORE you need the funds. Planning ahead and putting the retirement mortgage in place early has numerous benefits including but not limited to allowing the line of credit to grow as time goes forward.

What can I do with my retirement mortgage?
  • Make monthly payments.
  • Take a lump sum distribution tax free.
  • Allow the line of credit to remain untouched and grow over time.
  • Never make another mortgage payment, and use those funds to pay for other expenses such as prescriptions, co-pays, medical expenses, vacations, etc.
Can I purchase a home with a retirement mortgage?

Yes, absolutely!

Why Would I need a retirement mortgage When I Already Have a HELOC?

In your retirement years do you really want to make monthly payments when you access the line of credit. Plus what will you do when the line of credit closes and the bank wants you to make principal and interest payments? The retirement mortgage allows you to access your home equity and make no payments. Ever.

I have significant assets/investment – why would I consider a retirement mortgage?

Many investors and financial professionals recognize the advantage of keeping your retirement assets fully invested all the time. While paying off your mortgage with assets that could otherwise be working for you may be appropriate for some people, many homeowners rely on the interest and dividend income from their portfolios. Liquidating these assets can reduce your monthly income and in some cases could be a taxable event.

I'm a Financial Planner, Why Should I Care About Retirement Mortgages?

As a financial professional, you always want to act as a fiduciary for your clients, keeping their best interests paramount. Having a thorough understanding of the retirement mortgage will allow you to properly explore when this product is appropriate as part of a comprehensive retirement plan.

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do you have any retirement mortgage questions?

Contact me directly at 561.306.6927 or submit your question by clicking the button.

Retirement Mortgage Facts

With a Retirement Mortgage, does a borrower ‘retain’ ownership?

YES! The lender does not own the home, the borrower does. So long as the borrower continues maintaining the property’s taxes, insurances and upkeep, he/she would retain ownership and remain on title—just as they are now.

Can a borrower sell their home with a Retirement Mortgage?

YES! The Reverse Mortgage is a home loan. The borrower may sell their home and payoff the loan’s balance at any time.

Can a borrower continue making mortgage payments with Retirement Mortgage?

Outside of the property’s required payments to Homeowner’s Insurances, Taxes and Upkeep, the HECM loan is a payment free structured program. Borrowers may choose to make payments or not make them.

What happens to the home when the last remaining borrower passes away?

When the last remaining borrower no longer occupies the property as their primary residence, the loan becomes ‘due’. Heirs may choose to sell/pay-off the reverse mortgage or keep the property via their own financing.

No information on this page is provided by, nor was it approved by the Department of Housing & Urban Development or by the Federal Housing Administration.