Reverse mortgages (also called "home equity conversion loans") give older homeowners the ability to tap into built-up home equity without selling their home. Deciding how you would like to to receive your funds: by a monthly payment amount, a line of credit, or a one-time payment, you can take out a loan amount determined by your equity. Repayment is not required until the homeowner sells the property, moves (such as into a retirement community) or passes away. At the time your house has been sold or you no longer use it as your primary residence, you (or your estate) have to repay the lender for the cash you obtained from the reverse mortgage as well as interest and other finance charges.
The conditions of a reverse mortgage normally include being 62 or older, using the house as your main residence, and holding a small remaining mortgage balance or owning your home outright.
Reverse mortgages are ideal for retired homeowners or those who are no longer bringing home a paycheck but must add to their fixed income. Social Security and Medicare benefits aren't affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed rates. Your residence is never at risk of being taken away by the lender or sold against your will if you outlive the loan term - even if the current property value creeps below the loan balance. If you'd like to find out more about reverse mortgages, feel free to contact us at (650) 689-5684.
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.