Is a Reverse Mortgage for You?
Reverse mortgages (sometimes referred to as “home equity conversion loans”) give older homeowners the ability to use their equity without selling their home. Deciding how you would like to be paid: by a monthly payment, a line of credit, or a lump sum, you can receive a loan amount determined by your home equity. Repayment isn’t required until the time the borrower puts his home up for sale, moves (such as into a care facility) or passes away. After you sell your property or you no longer use it as your primary residence, you (or your estate) are obligated to repay the lender for the cash you received from the reverse mortgage as well as interest and other fees.
Who can Participate?
Typically, reverse mortgages are offered to borrowers at least 62 years old, have a small or zero balance owed against your home and maintain the property as your main living place.
Many homeowners who are on a limited income and find themselves needing additional funds find reverse mortgages advantageous for their situation. Social Security and Medicare benefits can’t be affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed interest rates. Your residence will never be in danger of being taken away from you by the lender or put up for sale against your will if you live longer than your loan term – even if the property value goes below the loan balance. Call us at 661.324.2427 if you’d like to explore the benefits of reverse mortgages.