Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to use their home equity without selling their home. Deciding how you would prefer to to receive your funds: by a monthly amount, a line of credit, or a one-time payment, you can receive a loan based on your equity. The loan doesn't have to be repaid until the homeowner sells the residence, moves away, or passes away. At the time your home has been sold or you no longer use it as your primary residence, you (or your estate) are required to pay back the lending institution for the funds you obtained from the reverse mortgage plus interest among other fees.
Usually, reverse mortgages are appropriate for borrowers who are at least sixty-two years old, have a low or zero balance owed against the home and use the property as your principal residence.
Reverse mortgages can be appropriate for homeowners who are retired or no longer bringing home a paycheck but need to supplement their fixed income. Social Security and Medicare benefits can not be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed rates. Your lender is not able to take away your house if you live past the loan term nor can you be obligated to sell your home to repay the loan amount even when the balance grows to exceed property value. Call us at 760-547-2080 to look into your reverse mortgage options.