Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to tap into equity without having to sell their home. The lending institution gives you funds determined by the equity you've built-up in your home; you get a one-time amount, a monthly payment or a line of credit. Paying back your loan isn't necessary until when the borrower sells the home, moves (such as into a care facility) or dies. When your home sells or is no longer used as your primary residence, you (or your estate) have to repay the lending institution for the cash you got from the reverse mortgage plus interest among other finance charges.
The conditions of a reverse mortgage loan usually are being 62 or older, using the house as your main residence, and holding a small remaining mortgage balance or having paid it off.
Reverse mortgages are ideal for homeowners who are retired or no longer working and must supplement their limited income. Social Security and Medicare benefits can not be affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed rates. The lender isn't able to take away your property if you outlive your loan nor will you be required to sell your residence to pay off your loan amount even when the balance grows to exceed property value. Contact us at (760) 632-7701 to look into your reverse mortgage options.
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