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Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to benefit from their equity without having to sell their home. Choosing between a monthly amount, a line of credit, or a lump sum, you can receive a loan based on your equity. The loan doesn't have to be paid back until the homeowner sells his residence, moves out, or passes away. You or representative of your estate is required to repay the reverse mortgage funds, interest accrued, and finance fees when your house is sold, or you no longer live in it.
Who is Able to Participate?
Usually, reverse mortgages require you be at least sixty-two years of age, have a small or zero balance in a mortgage and maintain the house as your main residence.
Reverse mortgages can be appropriate for homeowners who are retired or no longer bringing home a paycheck and need to supplement their income. Social Security and Medicare benefits won't be affected; and the funds are nontaxable. Reverse Mortgages can 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 outlive your loan term - even if the property value creeps under the loan balance. If you would like to learn more about reverse mortgages, feel free to call us at 949-421-1000.