Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to tap into equity without having to sell their home. Deciding how you'd like to to receive your money: by a monthly payment, a line of credit, or a lump sum, you can receive a loan amount determined by your equity. Repayment is not necessary until the borrower sells the home, moves (such as to a retirement community) or passes away. When you sell your property or you no longer use it as your primary residence, you (or your estate) have to pay back the lending institution for the funds you got from the reverse mortgage plus interest and other fees.
The conditions of a reverse mortgage normally include being 62 or older, maintaining the property as your primary living place, and having a low balance on your mortgage or owning your home outright.
Homeowners who live on a fixed income and find themselves needing additional funds find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits can not be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. Your house will never be at risk of being taken away from you by the lender or sold against your will if you outlive the loan term - even if the property value goes under the loan balance. Contact us at (562) 693-5048 to explore your reverse mortgage options.
Do you have a question regarding a mortgage program?