Is a Reverse Mortgage for You?
|In the market for a new mortgage? We'd be thrilled to answer your questions about your mortgage needs! Give us a call at 415-731-3100. Ready to get started? Apply Now.|
With a reverse mortgage (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. The lender pays you funds based on the equity you've built-up in your home; you receive a lump sum, a payment every month or a line of credit. The borrowed money doesn't have to be paid back until the homeowner sells the home, moves away, or passes away. After you sell your property or you no longer use it as your primary residence, you (or your estate) must repay the lending institution for the money you obtained from the reverse mortgage plus interest among other finance charges.
Who is Eligible?
Usually, reverse mortgages are appropriate for homeowners who are at least 62 years of age, have a small or zero balance in a mortgage and use the house as your principal living place.
Reverse mortgages are great for homeowners who are retired or no longer working but have a need to supplement their fixed income. Social Security and Medicare benefits are not affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. Your home will never be in danger of being taken away from you by the lender or sold against your will if you live longer than your loan term - even if the property value creeps below the loan balance. Contact us at 415-731-3100 if you want to explore the advantages of reverse mortgages.