Reverse Mortgages:the Facts

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With a reverse mortgage loan (also called a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without having to sell their homes. Choosing between a monthly payment, a line of credit, or a lump sum, you may get a loan amount determined by your home equity. The borrowed money does not have to be paid back until the borrower sells his home, moves away, or dies. You or representative of your estate must pay back the reverse mortgage amount, interest accrued, and finance fees after your property is sold, or you can no longer use it as your primary residence.

Who is Able to Participate?

The conditions of a reverse mortgage loan often include being 62 or older, maintaining your house as your main residence, and holding a small balance on your mortgage or owning your home outright.

Homeowners who are on a fixed income and find themselves needing additional money find reverse mortgages ideal for their situation. Social Security and Medicare benefits are not affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed rates. The lender can't take the property away if you live past the loan term nor will you be forced to sell your residence to repay the loan even when the balance grows to exceed current property value. Contact us at (805) 496-7500 if you would like to explore the advantages of reverse mortgages.

Strategic Home Loans, Inc. can answer questions about reverse mortgages and many others. Give us a call at (805) 496-7500.