Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to benefit from their equity without having to sell their home. The lender gives you funds determined by the equity you've accrued in your home; you get a one-time amount, a payment every month or a line of credit. The loan doesn't have to be paid back until the borrower sells the home, moves away, or passes away. You or an estate representative must pay back the reverse mortgage funds, interest , and other finance fees when your home is sold, or you no longer live in it.
Most reverse mortgages are offered to homeowners at least sixty-two years old, have a small or zero balance in a mortgage and maintain the property as your main residence.
Reverse mortgages can be advantageous for retired homeowners or those who are no longer bringing home a paycheck and need to supplement their income. Social Security and Medicare benefits will not be affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed rates. The home is never in danger of being taken away by the lending institution or put up for sale against your will if you live past the loan term - even if the current property value goes under the loan balance. Call us at (650) 689-5684 if you want to explore the benefits of reverse mortgages.
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