With extended families getting together around the holidays, the discussion may turn to the ongoing financial needs of elderly relatives.

As the calendar turns over to 2025, U.S. homeowners are sitting on record levels of home equity – more than $17 trillion in total.

In the third quarter of 2024, homeowners borrowed against $48 billion of this equity, the largest volume in two years. However, that represents only 0.42% of the total available equity, just a fraction of the norm.

Bay Equity Home Loans offers home equity loan solutions specially designed for Americans aged 62 and older. The Home Equity Conversion Mortgage (HECM), or Reverse Mortgage, allows seniors to put the equity in their homes to work for them - and can go a long way toward making up for retirement shortfalls.

A Reverse Mortgage allows senior homeowners to convert part of their home equity into cash. Disbursed funds can be taken as a lump sum, a line of credit and/or in monthly installments.

Seniors continue to own the home. As long as they keep up with maintenance, property taxes, and insurance, and comply with the terms of the financing agreements, borrowers never have to make monthly mortgage payments. It is available to qualified borrowers whether they own the home outright or are still making payments.

The flexibility of the HECM offers the potential for lifestyle changes. Seniors can use the funds to enhance their income, living situations, and/or cash flow. The line of credit option, for example, can provide emergency funds for large, unforeseen expenses.

Other Reverse Mortgage borrowers may choose to sell their properties and either purchase a smaller home or finance other ventures.

With people living longer, more and more working Americans find themselves taking on the financial responsibilities of one or both parents. Unfortunately, many family members who contribute financially to their parents’ care do so using their “after tax” dollars.

The HECM provides access to funds on a tax-free basis. * Funds can be used for long-term health care costs, home repairs, or other expenses.

Don’t hesitate to call Bay Equity today. The significant increase in cash flow and other benefits from a Reverse Mortgage brings borrowers – and their families - financial peace of mind.

This advertising material is not from HUD or the FHA, and this document is not approved by HUD or by the FHA or any other Federal Agency. Not available in all states. Contact your Loan Officer for more information.