Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to tap into home equity without selling their home. The lending institution pays you money based on the equity you've accrued in your home; you receive a one-time amount, a payment every month or a line of credit. The borrowed money does not have to be repaid until the homeowner sells his home, moves out, or dies. After your house sells or is no longer used as your primary residence, you (or your estate) have to pay back the lending institution for the money you obtained from your reverse mortgage in addition to interest and other fees.
Typically, reverse mortgages are offered to homeowners at least sixty-two years of age, have a small or zero balance in a mortgage and use the house as your principal residence.
Homeowners who live on a limited income and need additional funds find reverse mortgages helpful for their situation. Rates of interest can be fixed or adjustable and the funds are nontaxable and do not interfere with Social Security or Medicare benefits. Your residence is never in danger of being taken away by the lender or put up for sale against your will if you outlive the loan term - even if the property value goes under the loan balance. Call us at (650) 689-5684 to discuss your reverse mortgage options.
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.