Is a Reverse Mortgage for You?
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In a reverse mortgage (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. The lender pays you money based on your home equity amount; you receive a one-time amount, a payment every month or a line of credit. Paying back your loan isn't necessary until when the homeowner sells the home, moves (such as to a retirement community) or dies. You or your estate representative has to repay the reverse mortgage funds, interest , and finance charges at the time your house is sold, or you can no longer call it your primary residence.
Who is Eligible?
Typically, reverse mortgages require you be at least sixty-two years old, have a low or zero balance owed against your home and maintain the house as your principal residence.
Reverse mortgages are advantageous for retired homeowners or those who are no longer bringing home a paycheck and have a need to add to their income. Social Security and Medicare benefits won't be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed interest rates. Your lender cannot take the property away if you live past the loan term nor can you be obligated to sell your residence to pay off the loan even when the balance grows to exceed current property value. If you'd like to find out more about reverse mortgages, please contact us at (909) 467-1090.