Reverse Mortgages in Oregon: What Homeowners Need to Know Before Using One

Why Reverse Mortgages Are Gaining Attention

As home values have climbed across Clackamas County and the North Willamette Valley, many long-time homeowners now have significant equity. For some, a reverse mortgage can be a smart financial tool — especially when downsizing, supplementing retirement income, or wanting to stay in a home they love without monthly mortgage payments.

But the details matter. Here’s what to know.

What Is a Reverse Mortgage?

A reverse mortgage allows homeowners 62 and older to tap into a portion of their home equity. Instead of making payments to a lender, the lender pays you — either through a lump sum, monthly payments, or a line of credit.

The loan is repaid when:

• the home is sold,

• the borrower moves out, or

• the borrower passes away.

The most common type is the Home Equity Conversion Mortgage (HECM), which is federally insured.

Who a Reverse Mortgage Can Be Good For

Reverse mortgages aren’t for everyone, but they can be a great fit for homeowners who want to:

• Age in place without a monthly mortgage payment

• Supplement retirement income

• Downsize and use equity strategically

• Stay close to family in Canby, Oregon City, or Wilsonville

• Reduce monthly expenses while maintaining independence

I’ve seen many clients use the equity from their long-time home to purchase a smaller, more accessible property — often a single-level with low maintenance — and dramatically improve their quality of life.

Who Should Think Twice

A reverse mortgage may not be ideal if:

• You plan to move again soon

• You can’t maintain property taxes, insurance, and upkeep

• Other family members rely on staying in the home long-term

• You’re unsure about giving up some equity over time

This is why sitting down with a trusted lender and an experienced agent is essential.

How Downsizing Can Pair With a Reverse Mortgage

A strategy many Clackamas County homeowners use is the HECM for Purchase — a version of a reverse mortgage that helps buy a new home.

This can allow downsizers to:

• Buy a newer, safer, single-level home

• Use a portion of home-sale proceeds for the purchase

• Keep the rest of their proceeds as savings

• Avoid a monthly mortgage payment

It’s one of the most powerful tools for retirees who want freedom, safety, and financial breathing room.

Local Perspective

I’ve worked with several downsizers in the Canby area who used reverse mortgage tools as part of their transition plan. For many, the biggest benefit wasn’t financial — it was peace of mind. A home that better fits their lifestyle, fewer stairs, lower maintenance, and more predictable monthly expenses all add up to a more enjoyable next chapter.

Key Questions to Ask a Lender

Before deciding, bring these questions to a qualified reverse-mortgage specialist:

• What fees are involved?

• How much equity can I access?

• How will this affect my heirs?

• What happens if I want to sell later?

• Which payout structure fits my goals?

Clarity is everything — and a good lender will take the time to walk through each detail.

Bottom Line

Reverse mortgages can be a powerful tool for Oregon homeowners — but only when used strategically. Whether you’re exploring aging in place, downsizing, or planning your financial future, it’s worth understanding your options.

As always, I’m here to help you look at the big picture and choose the path that supports your long-term goals.