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Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to tap into equity without the necessity of selling their home. The lender pays out funds determined by your home equity amount; you get a one-time amount, a monthly payment or a line of credit. Paying back your loan isn't required until the borrower puts his home up for sale, moves (such as to a care facility) or passes away. After your home sells or you no longer use it as your main residence, you (or your estate) are obligated to pay back the lender for the cash you obtained from your reverse mortgage plus interest among other fees.
Who can Participate?
Usually, reverse mortgages require youto be at least 62 years old, have a small or zero balance owed against the home and maintain the house as your main living place.
Reverse mortgages are appropriate for homeowners who are retired or no longer bringing home a paycheck and have a need to supplement their income. Social Security and Medicare benefits can't be affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed rates. The lending institution will not take the property away if you live past the loan term nor can you be made to sell your home to pay off the loan amount even when the balance grows to exceed current property value. Call us at (909) 467-1090 if you'd like to explore the advantages of reverse mortgages.