Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to use their built-up home equity without having to sell their home. Deciding how you prefer to be paid: by a monthly payment, a line of credit, or a lump sum, you may get a loan amount determined by your equity. The borrowed money doesn't have to be repaid until the homeowner sells his residence, moves away, or passes away. When your home has been sold or you no longer use it as your primary residence, you (or your estate) must pay back the lender for the funds you received from the reverse mortgage plus interest among other fees.
The requirements of a reverse mortgage loan normally include being 62 or older, maintaining your house as your main residence, and having a small balance on your mortgage or owning your home outright.
Reverse mortgages are great for retired homeowners or those who are no longer bringing home a paycheck but must add to their income. Social Security and Medicare benefits will not be affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed interest rates. Your house can never be at risk of being taken away by the lending institution or sold without your consent if you live past your loan term - even if the property value dips under the balance of the loan. If you would like to learn more about reverse mortgages, please call us at (562) 693-5048.
Do you have a question regarding a mortgage program?