Take a moment to understand a Reverse Mortgage.

Didier Malagies • May 18, 2022

A reverse mortgage is designed as a financial tool to help seniors age in place by tapping into their home equity, which can be used for whatever purpose they see fit, from paying off medical bills and utility expenses to funding improvements or renovations.

A reverse mortgage can work well for seniors who are living on a fixed income and want to pay off debt or fund their retirement, but it’s not right for everyone. It’s important that you carefully consider your options before taking this step.

What is a reverse mortgage?


A reverse mortgage is a loan. The lender issues you a payment based on the value of your home, minus any outstanding debts and costs to maintain the property.

The loan is partially repaid when you sell or refinance your home. But if you don't use the money to pay off the home equity line of credit or remove it from your house before you die, then it becomes a lien against your estate.

The funds are tax-free and do not require monthly payments. If you end up needing additional cash flow during retirement, however, reverse mortgages can also be converted into an annuity—a monthly payout for life (with no interest charges).



A Reverse Mortgage is not a new concept; it has been around for more than 50 years and has helped tens of thousands of seniors.


Reverse Mortgages were established in 1961 and have been used to help seniors live comfortably in their own homes.


The first reverse mortgage was insured by the FHA (Federal Housing Administration). This program was designed to help seniors who wanted to remain in their homes, but needed financial assistance due to a lack of income or poor health. In today's world, this type of loan is still available for those who qualify for one.



A reverse mortgage is simply the opposite of a traditional mortgage.


A traditional mortgage is a loan you take out to buy a home, with the goal of building equity over time as you pay off the loan. With a reverse mortgage, you are not required to make monthly payments, but the loan balance increases over time as interest on the loan and fees accumulate. When you die, your heirs can inherit your home without having to make any payments on it or take any action.



A reverse mortgage is not just another loan product.


It's a financial planning tool that can be used as part of an overall retirement plan.


You can pay off your loan at any time by selling your home or refinance with another lender. But unlike other types of loans, this type doesn't require monthly payments from you—as long as you remain living in the home and keeping up with maintenance costs (such as property taxes).


A reverse mortgage allows you to convert your home equity into either monthly or lump sum payments or both, while still living at home. The funds are tax-free and there are no required monthly payments, as long as you remain living in the home and continue to maintain it.


A reverse mortgage is a loan that lets you convert your home equity into money while still living in your home.


The funds can be used for any purpose, including:

  • Paying off the mortgage
  • Providing monthly payments to supplement other income sources or to help pay off debts and/or medical expenses
  • Taking out a lump sum payment to use as you wish, such as buying a new car or traveling abroad



Who uses a reverse mortgage?

  • Seniors who are "cash poor but house rich" and need supplemental income
  • People who want to pay off debts
  • People who want to remain in their homes, such as those with special needs or who want to age in place
  • Those who need money for medical bills or other expenses related to living at home. Reverse mortgage borrowers must be 62 years old or older. If you’re younger than 62, there are other options for financing your retirement, such as Social Security benefits and personal savings. To qualify for a reverse mortgage, you must:  * Be age 62 or older;  * Be the owner and occupant of the home; and  * Have sufficient equity in your home (the amount depends on the type of loan).


Seniors who have paid-off their traditional mortgages may choose this option to supplement their social security benefits, pensions, and savings so they can stay in their homes and improve the quality of the rest of their lives.


You may want to consider a reverse mortgage if you are:

  • Retired and have paid off your traditional mortgage. You can borrow against the value of your home without having to make monthly payments.
  • Wanting to supplement your income.
  • Paying off existing debt.
  • Needing money for medical bills or other current expenses that cannot be covered by Social Security, pensions and savings alone.
  • Wanting an opportunity to improve the quality of the rest of their lives by staying in their homes for as long as possible – even if it means delaying some planned expenses or activities until later in life when finances allow such things again (like travel).


If you would like to speak to a Reverse Mortgage advisor, give us a call (727) 784-5555. Or use our form below to ask a question.

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Now offering a 3rd Mortgage

By Didier Malagies • October 6, 2025
A third mortgage is an additional loan secured by the same property after a first and second mortgage already exist. It’s essentially a third lien on the property, which means it’s in third place to be repaid if the borrower defaults — making it riskier for lenders. Because of this higher risk, third mortgages typically: Have higher interest rates, Offer smaller loan amounts, and Require strong borrower profiles or solid property equity. 🤖 How AI Is Transforming 3rd Mortgage Lending AI tools can make offering third mortgages much more efficient and lower-risk by handling the data-heavy analysis that used to take underwriters days. Here’s how: 1. AI-Powered Lead Generation AI platforms identify homeowners with significant equity but limited cash flow — ideal candidates for third liens. Example: AI scans property databases, loan records, and credit profiles to spot someone with 60–70% total combined LTV (Loan-to-Value). The system targets those borrowers automatically with personalized financing offers. 2. Smart Underwriting AI underwriters use advanced algorithms to evaluate: Combined LTV across all liens, Income stability and payment history, Real-time credit behavior, Local property value trends. This allows the lender to make quick, data-backed decisions on small, higher-risk loans while keeping default rates low. 3. Dynamic Pricing AI adjusts rates and terms based on real-time risk scoring — similar to how insurance companies use predictive pricing. For example: Borrower A with 65% CLTV might get 10% APR. Borrower B with 85% CLTV might see 13% APR. 4. Automated Servicing and Risk Monitoring Post-funding, AI tools can monitor the borrower’s financial health, detect early signs of distress, and even suggest restructuring options before default risk rises. 💡 Why It’s Appealing Opens a new revenue stream for lenders and brokers, Meets demand for smaller equity-tap loans without refinancing, Uses AI automation to keep costs low despite higher credit risk, Attracts tech-savvy borrowers seeking quick approvals. tune in and learn https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329

Always look at the 10 year treasury

By Didier Malagies • September 29, 2025
Great question — the 10-year U.S. Treasury Note (T-Note) is one of the most important benchmarks in finance, and it’s tightly linked to interest rates. Here’s a breakdown of how it works and why it matters: 1. What the 10-Year Treasury Is It’s a bond issued by the U.S. government with a maturity of 10 years. Investors buy it, loaning money to the government in exchange for: Semiannual coupon payments (interest), and The face value back at maturity. Because it’s backed by the U.S. government, it’s considered one of the safest investments in the world. 2. Yield vs. Price The yield is the effective return investors earn on the bond. The yield moves inversely with the bond’s price: If demand is high and price goes up → yield goes down. If demand falls and price goes down → yield goes up. 3. Connection to Interest Rates The 10-year Treasury yield reflects investor expectations about: Future Federal Reserve policy (Fed funds rate). Inflation (higher inflation expectations push yields higher). Economic growth (slower growth often pushes yields lower). While the Fed directly controls only the short-term Fed funds rate, the 10-year yield is market-driven and often moves in anticipation of where the Fed will go. 4. Why It’s So Important Mortgage rates & lending costs: 30-year mortgage rates generally move in step with the 10-year yield (plus a spread). If the 10-year goes up, mortgage rates usually rise. Benchmark for global finance: Companies, governments, and banks often price loans and bonds based on the 10-year yield. Risk sentiment: Investors flock to Treasuries in times of uncertainty, driving yields down (“flight to safety”). 5. Practical Example Suppose the Fed raises short-term rates to fight inflation. Investors expect tighter policy and possibly lower inflation later. If they believe inflation will fall, demand for 10-years might rise → yields drop. But if they fear inflation will stay high, demand falls → yields rise. Mortgage rates, business loans, and even stock valuations all adjust accordingly. ✅ In short: The 10-year Treasury is the bridge between Fed policy and real-world borrowing costs. It signals market expectations for growth, inflation, and Fed moves, making it a crucial guide for interest rates across the economy. tune in and learn https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329 

AI underwriting to human underwriting and this is what happened

By Didier Malagies • September 24, 2025
Speed & Efficiency AI Underwriting: Processes applications in seconds to minutes. 1.Can instantly pull data from multiple sources (credit reports, bank statements, income verification, property valuations, etc.). Ideal for high-volume, standardized cases. Human Underwriter: Takes hours to days, depending on complexity. Manually reviews documents, contacts third parties, and applies professional judgment. Slower, especially for complex or edge cases. 2. Data Handling AI: Uses algorithms and machine learning to analyze massive datasets. Can detect patterns humans might miss (e.g., spending behavior, alternative data like utility payments, even digital footprints in some markets). Human: Relies on traditional documentation (pay stubs, tax returns, appraisals). Limited by human bandwidth—can’t process as much raw data at once. 3. Consistency & Bias AI: Decisions are consistent with its rules and training data. However, if the data it’s trained on is biased, the system can replicate or even amplify those biases. Human: Brings subjective judgment. Can weigh special circumstances that don’t fit a neat rule. Risk of inconsistency—two underwriters might interpret the same file differently. May have unconscious bias, but also flexibility to override rigid criteria. 4. Risk Assessment AI: Excels at quantifiable risks (credit scores, loan-to-value ratios, historical claim data). Weak at unstructured or nuanced factors (e.g., a borrower with an unusual income stream, or a claim with unclear circumstances). Human: Strong at contextual judgment—understanding unique borrower situations, exceptions, or “gray areas.” Can pick up on red flags that an algorithm might miss (e.g., forged documents, conflicting information). 5. Regulation & Accountability AI: Regulators are still catching up. Requires transparency in decision-making (explainable AI). Hard to appeal an AI decision if it can’t explain its reasoning clearly. Human: Provides a clear chain of accountability—borrower can request explanations or escalate. Easier for compliance teams to audit decision-making. 6. Cost & Scalability AI: Scales cheaply—one system can process thousands of applications simultaneously. Lower ongoing labor costs once implemented. Human: Labor-intensive, costs grow with volume. Better suited for complex, high-value, or unusual cases rather than mass processing. ✅ Bottom line: AI underwriting is best for speed, scale, and straightforward cases. Human underwriters are best for nuanced judgment, exceptions, and handling edge cases. Most modern institutions use a hybrid model: AI handles the bulk of simple files, while humans step in for complex or flagged cases. tune in and learn https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329
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