Reverse mortgages (also called "home equity conversion loans") enable older homeowners to use their built-up equity without the necessity of selling their home. Deciding how you would prefer to be paid: by a monthly amount, a line of credit, or a lump sum, you may get a loan amount determined by your equity. The loan does not have to be paid back until the homeowner sells the home, moves away, or dies. You or an estate representative must pay back the reverse mortgage loan, interest accrued, and other finance charges when your home is sold, or you are no longer living in it.
The conditions of a reverse mortgage often are being sixty-two or older, using the home as your main residence, and having a low balance on your mortgage or having paid it off.
Many homeowners who live on a limited income and need additional money find reverse mortgages advantageous for their situation. Social Security and Medicare benefits are not affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed rates. The home will never be in danger of being taken away from you by the lender or sold against your will if you outlive the loan term - even if the current property value goes below the balance of the loan. If you would like to learn more about reverse mortgages, feel free to call us at 562 320-0510.
Do you have a question regarding a mortgage program?