Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to benefit from their home equity without having to sell their home. The lending institution pays you money based on the equity you've built-up in your home; you get a lump sum, a monthly payment or a line of credit. Paying back your loan isn't necessary until the borrower sells the property, moves (such as into a retirement community) or dies. You or representative of your estate is obligated to pay back the reverse mortgage loan, interest , and finance charges when your house is sold, or you can no longer call it your primary residence.
Typically, reverse mortgages require youto be at least 62 years old, have a low or zero balance owed against the home and use the property as your principal living place.
Reverse mortgages can be ideal for retired homeowners or those who are no longer bringing home a paycheck but need to supplement their limited income. Social Security and Medicare benefits aren't affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed interest rates. The house is never at risk of being taken away by the lender or sold without your consent if you outlive the loan term - even if the current property value creeps below the balance of the loan. Call us at 760-547-2080 to explore your reverse mortgage options.