Is a Reverse Mortgage the Right Move? Plus, Market Updates & Mortgage Insights with Riley Anderson

What You Really Need to Know About the Market, Mortgages, and Reverse Mortgages Right Now

If you’re wondering what’s happening with mortgage rates, whether now’s the time to buy or refinance, or you’re helping a parent explore housing options in retirement, this post is for you.

I recently sat down with Riley Anderson, partner at Freestone Mortgage and founder of Freestone Senior Connect. He specializes in traditional mortgage loans, reverse mortgages, and helping those 55+ navigate important housing decisions with clarity and care. Here are the key takeaways from our conversation on Real Estate Recess.

Mortgage Rates: What That Fed Announcement Really Means

The Federal Reserve recently decided to hold interest rates steady. While that might sound like mortgage rates should drop, that’s not exactly how it works. The Fed rate affects short-term lending like credit cards and car loans, but mortgage rates are more influenced by the bond market.

Good news? Mortgage applications are picking up again, and we’re seeing signs of recovery as rates dip below 7%. More buyers are stepping off the sidelines and listings are rising, especially here in Clackamas County and the surrounding Portland suburbs.

Reverse Mortgages: Updated, Regulated, and Worth a Fresh Look

Reverse mortgages had a rough reputation in the past, and honestly, it was earned. But since 2014, there’s been serious reform. Today’s reverse mortgage is an FHA-backed product that allows homeowners 62 and older to access the equity in their home without selling or making monthly mortgage payments.

Key updates:

• Spouses under 62 are now protected

• Strict financial reviews help prevent misuse

• Fee regulations have improved transparency

• You still own your home—you’re not signing it away

And perhaps most importantly, this isn’t just a “last resort” option. Reverse mortgages can actually be a smart strategy before tapping into retirement funds.

Reverse Mortgage for Purchase: More Buying Power with No Monthly Mortgage

Yes, you can use a reverse mortgage to buy a home. This is a great option for retirees looking to downsize or right-size without wiping out their savings. Here’s how it works:

• You make a large down payment (typically 60-70%)

• The reverse mortgage covers the rest

• You own the home and don’t have monthly mortgage payments

This can be especially helpful if you’re selling a larger home and want to preserve some cash while moving into a one-level or lower-maintenance home better suited to your current lifestyle.

Creative Financing Tools for Buyers

For buyers of any age, there are tools out there to make homeownership more affordable in today’s rate environment:

• Temporary rate buy-downs (lower initial monthly payments that adjust upward over time)

• Permanent buy-downs (paying more upfront to lock in a lower rate)

• Seller-paid closing costs to reduce your out-of-pocket expenses

These aren’t the risky products of the early 2000s. Buyers must qualify for the highest monthly payment upfront, and there’s transparency around how and when payments adjust. These tools can be especially useful if you expect to refinance in the next couple of years.

Fast Closings: Why the Right Lender (and Agent) Matters

Riley and I agree on this one: who you work with matters. In a competitive market, being able to close in two weeks versus four can give you a serious edge.

When your lender and agent know how to communicate, move quickly, and align with title and insurance partners, the process becomes smoother and less stressful. This is especially important when you're negotiating or trying to stand out among multiple offers.

Final Thoughts: Know Your Options

Whether you’re nearing retirement, helping a loved one make housing decisions, or trying to buy your first home, this market still holds opportunity. The key is having the right information and the right people to help you navigate it.

Want to explore your options? Reach out anytime. I’m here to help you make informed, confident decisions—whether you're buying, selling, or just figuring out your next steps.

Catch the full episode with Riley Anderson on YouTube, and subscribe for more weekly updates on life and real estate in the Portland suburbs on my channel, Living in Portland Suburbs.