Reverse mortgages (also called "home equity conversion loans") enable older homeowners to tap into home equity without selling their home. The lending institution gives you money based on the equity you've built-up in your home; you receive a one-time amount, a payment every month or a line of credit. Paying back your loan is not required until the time the homeowner sells the property, moves (such as to a care facility) or passes away. After you sell your home or is no longer used as your primary residence, you (or your estate) are obligated to pay back the lending institution for the funds you got from your reverse mortgage plus interest among other finance charges.
Typically, reverse mortgages require youto be at least sixty-two years old, have a low or zero balance in a mortgage and maintain the home as your main residence.
Many homeowners who are on a limited income and find themselves needing additional money find reverse mortgages helpful for their circumstance. Rates of interest can be fixed or adjustable while the money is nontaxable and doesn't affect Social Security or Medicare benefits. The lender isn't able to take away your residence if you live past the loan term nor will you be forced to sell your residence to repay the loan amount even if the loan balance grows to exceed property value. Contact us at (818)645-7035 to look into your reverse mortgage options.
Do you have a question regarding a mortgage program?