Reverse mortgages (also called "home equity conversion loans") give older homeowners the ability to benefit from their equity without the necessity of selling their home. Choosing between a monthly amount, a line of credit, or a lump sum, you may take out a loan based on your home equity. The borrowed money doesn't have to be paid back until the borrower sells the residence, moves out, or dies. You or an estate representative has to pay back the reverse mortgage funds, interest accrued, and other finance fees at the time your home is sold, or you are no longer living in it.
The requirements of a reverse mortgage loan usually are being sixty-two or older, maintaining the property as your main residence, and holding a small balance on your mortgage or having paid it off.
Reverse mortgages are great for homeowners who are retired or no longer bringing home a paycheck and must supplement their income. Interest rates can be fixed or adjustable and the funds are nontaxable and do not adversely affect Medicare or Social Security benefits. The house is never at risk of being taken away from you by the lender or sold without your consent if you outlive your loan term - even if the current property value dips below the balance of the loan. Contact us at 562 320-0510 to explore your reverse mortgage options.
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