Is a Reverse Mortgage for You?

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In a reverse mortgage (also referred to as a 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 determined by the equity you've built-up in your home; you get a one-time amount, a payment each month or a line of credit. The borrowed money does not have to be repaid until the borrower sells the residence, moves out, or dies. You or representative of your estate has to pay back the reverse mortgage amount, interest , and finance charges at the time your property is sold, or you are no longer living in it.

Who is Able to Participate?

The conditions of a reverse mortgage loan typically are being sixty-two or older, maintaining the property as your primary living place, and holding a low balance on your mortgage or having paid it off.

Many homeowners who are on a limited income and need additional funds find reverse mortgages ideal for their situation. Social Security and Medicare benefits aren't affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed rates. Your home is never in danger of being taken away from you by the lending institution or sold without your consent if you live longer than your loan term - even if the property value dips under the loan balance. If you would like to find out more about reverse mortgages, feel free to call us at (805) 496-7500.

Strategic Home Loans, Inc. can walk you through the pitfalls of getting a reverse mortgage. Give us a call at (805) 496-7500.