With a reverse mortgage (also referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. Deciding how you'd prefer to be paid: by a monthly amount, a line of credit, or a lump sum, you may get a loan based on your equity. The loan doesn't have to be paid back until the borrower sells the residence, moves away, or dies. After you sell your property or is no longer used as your main residence, you (or your estate) are obligated to repay the lending institution for the funds you got from the reverse mortgage as well as interest among other finance charges.
Generally, reverse mortgages require youto be at least 62 years of age, have a low or zero balance owed against your home and use the home as your main living place.
Many homeowners who are on a fixed income and need additional funds find reverse mortgages ideal for their situation. Rates of interest can be fixed or adjustable and the money is nontaxable and doesn't interfere with Medicare or Social Security benefits. Your lending institution cannot take the property away if you live past the loan term nor can you be made to sell your home to repay the loan amount even when the loan balance grows to exceed property value. Contact us at (760) 632-7701 if you would like to explore the benefits of reverse mortgages.
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