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 gives you money determined by your home equity amount; you receive a lump sum, a monthly payment or a line of credit. The borrowed money doesn't have to be paid back until the homeowner sells his residence, moves away, or dies. When your home sells or is no longer used as your main residence, you (or your estate) are obligated to pay back the lending institution for the cash you got from the reverse mortgage plus interest and other fees.
Who is Eligible?
The conditions of a reverse mortgage usually are being sixty-two or older, maintaining your house as your primary residence, and having a small remaining mortgage balance or owning your home outright.
Reverse mortgages are appropriate for retired homeowners or those who are no longer bringing home a paycheck and need to add to their income. Social Security and Medicare benefits can not be affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed rates. The home can never be at risk of being taken away by the lending institution or sold against your will if you live past your loan term - even if the current property value dips below the loan balance. If you'd like to learn more about reverse mortgages, please call us at (909) 467-1090.