Is a Reverse Mortgage for You?

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With a reverse mortgage (sometimes called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without having to sell their homes. Deciding how you'd like to to receive your money: by a monthly payment, a line of credit, or a lump sum, you can get a loan amount determined by your equity. Paying back your loan isn't required until after the borrower sells the property, moves (such as into a retirement community) or dies. You or your estate representative is required to repay the reverse mortgage amount, interest accrued, and finance fees at the time your property is sold, or you are no longer living in it.

Who can Participate?

The conditions of a reverse mortgage usually include being sixty-two or older, using the property as your main residence, and holding a small balance on your mortgage or having paid it off.

Reverse mortgages can be great for retired homeowners or those who are no longer working but need to supplement their income. Social Security and Medicare benefits are not affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. The lender isn't able to take the property away if you live past the loan term nor will you be obligated to sell your home to repay the loan even if the loan balance is determined to exceed current property value. Call us at 949-421-1000 to look into your reverse mortgage options.

First California Financial can walk you through the pitfalls of getting a reverse mortgage. Call us at 949-421-1000.