Is a Reverse Mortgage for You?

Looking for a loan? We will be glad to assist you! Give us a call at 949-421-1000. Want to get started? Apply Here.

In a reverse mortgage (also referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without having to sell their homes. The lender pays out money determined by the equity you've built-up in your home; you get a lump sum, a monthly payment or a line of credit. Paying back your loan is not necessary until after the homeowner sells the property, moves (such as to a care facility) or passes away. You or an estate representative has to repay the reverse mortgage amount, interest accrued, and other finance charges when your home is sold, or you are no longer living in it.

Who is Eligible?

The conditions of a reverse mortgage generally are being 62 or older, using the property as your primary living place, and having a low balance on your mortgage or owning your home outright.

Reverse mortgages are appropriate for homeowners who are retired or no longer working and need to add to their limited income. Interest rates may be fixed or adjustable and the funds are nontaxable and don't adversely affect Social Security or Medicare benefits. Your home is never at risk of being taken away from you by the lending institution or put up for sale without your consent if you live longer than the loan term - even if the current property value dips below the balance of the loan. If you'd like to learn more about reverse mortgages, please call us at 949-421-1000.

At First California Financial, we answer questions about reverse mortgages every day. Call us: 949-421-1000.