Is a Reverse Mortgage for You?
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With a reverse mortgage (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. The lender gives you funds determined by your home equity amount; you receive a one-time amount, a monthly payment or a line of credit. Paying back your loan is not required until after the homeowner sells the property, moves (such as into a retirement community) or dies. After your house sells or you no longer use it as your main residence, you (or your estate) must pay back the lender for the funds you got from the reverse mortgage in addition to interest and other finance charges.
Who is Eligible?
Generally, reverse mortgages are offered to borrowers who are at least 62 years old, have a low or zero balance owed against the home and maintain the house as your principal residence.
Reverse mortgages are helpful for homeowners who are retired or no longer bringing home a paycheck but must add to their limited income. Interest rates may be fixed or adjustable and the funds are nontaxable and don't affect Social Security or Medicare benefits. The house can never be at risk of being taken away by the lending institution or sold against your will if you live longer than your loan term - even if the current property value creeps under the loan balance. Contact us at (909) 467-1090 if you would like to explore the benefits of reverse mortgages.