Reverse Mortgages:the Facts

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Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to benefit from their built-up equity without selling their home. Deciding how you'd like to be paid: by a monthly amount, a line of credit, or a one-time payment, you can take out a loan based on your home equity. The loan does not have to be paid back until the borrower sells the home, moves out, or dies. You or your estate representative must pay back the reverse mortgage amount, interest , and finance fees when your house is sold, or you are no longer living in it.

Who is Eligible?

Generally, reverse mortgages require you be at least sixty-two years old, have a small or zero balance in a mortgage and maintain the home as your principal residence.

Reverse mortgages can be helpful for retired homeowners or those who are no longer working but need to add to their limited income. Social Security and Medicare benefits aren't affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. Your home will never be at risk of being taken away by the lender or put up for sale against your will if you live past your loan term - even if the current property value goes under the loan balance. Contact us at 949-421-1000 to look into your reverse mortgage options.

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