In a reverse mortgage loan (also called a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without having to sell their homes. The lending institution gives you funds based on your home equity amount; you receive a lump sum, a monthly payment or a line of credit. The borrowed money does not have to be repaid until the homeowner sells the residence, moves away, or dies. You or representative of your estate is required to pay back the reverse mortgage funds, interest , and other finance charges when your house is sold, or you are no longer living in it.
Who can Participate?
The conditions of a reverse mortgage loan typically are being sixty-two or older, maintaining your home as your main living place, and having a small balance on your mortgage or owning your home outright.
Many homeowners who live on a limited income and need additional funds find reverse mortgages helpful for their circumstance. Social Security and Medicare benefits aren't affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. Your house is never in danger of being taken away by the lender or put up for sale against your will if you live past your loan term - even if the current property value dips under the balance of the loan. If you'd like to learn more about reverse mortgages, feel free to contact us at 415-381-7006.
At RPM Mortgage - Paul Schectman Senior Mortgage Advisor, we answer questions about reverse mortgages every day. Give us a call at 415-381-7006.
Paul Schectman - Sr. Mortgage Advisor CA DRE License: 00885318 NMLS ID: 333583 RPM Mortgage - 591 Redwood Highway, Suite 1150, Mill Valley, CA 94941
