Is a Reverse Mortgage for You?
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With a reverse mortgage loan (also referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without having to sell their homes. Choosing between a monthly payment amount, a line of credit, or a one-time payment, you may take out a loan amount determined by your equity. Paying back your loan is not required until when the homeowner sells the property, moves (such as into a care facility) or dies. You or an estate representative must repay the reverse mortgage funds, interest accrued, and finance fees at the time your home is sold, or you are no longer living in it.
Who is Eligible?
Generally, reverse mortgages are appropriate for borrowers who are at least sixty-two years old, have a low or zero balance owed against your home and maintain the property as your principal living place.
Reverse mortgages can be advantageous for retired homeowners or those who are no longer working but must add to their limited income. Social Security and Medicare benefits are not affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed interest rates. Your lender will not take away your house if you outlive your loan nor can you be required to sell your residence to pay off the loan amount even when the loan balance grows to exceed current property value. If you would like to find out more about reverse mortgages, please call us at (909) 467-1090.