Is a Reverse Mortgage for You?

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Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to benefit from their built-up equity without selling their home. The lender gives you funds determined by 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 does not have to be paid back until the borrower sells the residence, moves away, or passes away. You or your estate representative is obligated to pay back the reverse mortgage funds, interest accrued, and finance charges at the time your property is sold, or you are no longer living in it.

Who is Eligible?

The conditions of a reverse mortgage loan typically include being 62 or older, maintaining your property as your main residence, and holding a low balance on your mortgage or having paid it off.

Reverse mortgages can be great for homeowners who are retired or no longer bringing home a paycheck but have a need to add to their fixed income. Social Security and Medicare benefits can not be affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed rates. The lending institution can't take away your property if you outlive your loan nor may you be obligated to sell your home to repay the loan even if the balance is determined to exceed property value. If you'd like to learn more about reverse mortgages, please contact us at (805) 496-7500.

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