Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to use their built-up equity without having to sell their home. Deciding how you would prefer to be paid: by a monthly payment, a line of credit, or a one-time payment, you may receive a loan based on your equity. Repayment is not necessary until the borrower sells the property, moves (such as to a retirement community) or dies. You or an estate representative has to repay the reverse mortgage amount, interest , and other finance charges after your house is sold, or you no longer live in it.
Usually, reverse mortgages require youto be at least 62 years of age, have a low or zero balance in a mortgage and maintain the property as your main residence.
Reverse mortgages can be helpful for retired homeowners or those who are no longer bringing home a paycheck and must supplement their limited income. Social Security and Medicare benefits are not affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed rates. The home can never be at risk of being taken away by the lending institution or put up for sale without your consent if you live past your loan term - even if the property value dips below the balance of the loan. Call us at (818)645-7035 if you would like to explore the advantages of reverse mortgages.
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