With a reverse mortgage loan (also 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 prefer to to receive your funds: by a monthly payment, a line of credit, or a lump sum, you may take out a loan amount determined by your home equity. The loan doesn't have to be paid back until the homeowner sells his home, moves away, or passes away. At the time you sell your property or you no longer use it as your primary residence, you (or your estate) are required to repay the lending institution for the money you obtained from the reverse mortgage in addition to interest and other finance charges.
Generally, reverse mortgages are appropriate for borrowers at least 62 years old, have a small or zero balance in a mortgage and use the house as your principal residence.
Many homeowners who are on a limited income and have a need for additional funds find reverse mortgages advantageous for their situation. Interest rates may be fixed or adjustable and the funds are nontaxable and don't adversely affect Medicare or Social Security benefits. The residence is never at risk of being taken away from you by the lending institution or sold against your will if you outlive the loan term - even if the property value dips below the loan balance. Call us at 760-547-2080 to discuss your reverse mortgage options.