Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to tap into built-up equity without having to sell their home. Deciding how you would like to to receive your funds: by a monthly amount, a line of credit, or a lump sum, you can get a loan based on your home equity. The loan does not have to be paid back until the borrower sells his residence, moves out, or dies. After you sell your home or you no longer use it as your primary residence, you (or your estate) have to repay the lender for the money you got from your reverse mortgage in addition to interest among other fees.
Most reverse mortgages require you be at least sixty-two years old, have a low or zero balance in a mortgage and maintain the house as your main residence.
Reverse mortgages are advantageous for retired homeowners or those who are no longer bringing home a paycheck and need to supplement their income. Social Security and Medicare benefits aren't affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed interest rates. Your house is never at risk of being taken away by the lender or sold against your will if you live longer than your loan term - even if the current property value creeps under the loan balance. Call us at 949-421-1000 if you'd like to explore the benefits of reverse mortgages.