Reverse Mortgages:the Facts

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In a reverse mortgage loan (sometimes called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. Deciding how you would prefer to to receive your funds: by a monthly payment, a line of credit, or a one-time payment, you can take out a loan amount determined by your equity. The loan does not have to be repaid until the borrower sells his residence, moves out, or dies. You or your estate representative has to repay the reverse mortgage loan, interest , and finance charges when your property is sold, or you can no longer call it your primary residence.

Who is Eligible?

The requirements of a reverse mortgage usually include being 62 or older, using the house as your main living place, and holding a low balance on your mortgage or having paid it off.

Reverse mortgages can be ideal for homeowners who are retired or no longer working but have a need to add to their fixed income. Social Security and Medicare benefits are not affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed rates. The lender cannot take the property away if you live past the loan term nor can you be obligated to sell your residence to repay your loan amount even if the loan balance grows to exceed property value. Call us at 760-547-2080 if you want to explore the benefits of reverse mortgages.

Mortgage Max Inc can answer questions about reverse mortgages and many others. Give us a call: 760-547-2080.