Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to use their built-up home equity without having to sell their home. Deciding how you prefer to be paid: by a monthly amount, a line of credit, or a lump sum, you can receive a loan amount determined by your equity. Repayment is not necessary until after the homeowner puts his home up for sale, moves (such as to a retirement community) or dies. You or your estate representative must pay back the reverse mortgage loan, interest , and finance fees at the time your house is sold, or you no longer live in it.
Generally, reverse mortgages are appropriate for homeowners who are at least sixty-two years of age, have a low or zero balance owed against your home and maintain the property as your principal residence.
Reverse mortgages are helpful for homeowners who are retired or no longer bringing home a paycheck and need to add to their income. Social Security and Medicare benefits are not affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed rates. The lending institution can't take the property away if you outlive your loan nor can you be obligated to sell your residence to repay your loan even if the balance grows to exceed property value. Call us at (760) 632-7701 to look into your reverse mortgage options.
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