In a reverse mortgage (also called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. Choosing between a monthly payment, a line of credit, or a lump sum, you may take out a loan based on your home equity. Paying back your loan isn't necessary until after the borrower puts his home up for sale, moves (such as to a retirement community) or dies. When your home has been sold or is no longer used as your main residence, you (or your estate) have to pay back the lending institution for the cash you received from the reverse mortgage in addition to interest among other finance charges.
Generally, reverse mortgages require youto be at least sixty-two years old, have a low or zero balance in a mortgage and maintain the house as your principal residence.
Reverse mortgages are appropriate for homeowners who are retired or no longer bringing home a paycheck but need to supplement their limited income. Social Security and Medicare benefits can not be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. The lender can't take the property away if you outlive your loan nor may you be made to sell your residence to pay off your loan even if the balance grows to exceed current property value. Contact us at (760) 632-7701 if you'd like to explore the benefits of reverse mortgages.
Do you have a question regarding a mortgage program?