Is a Reverse Mortgage for You?

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In a reverse mortgage loan (sometimes 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. Choosing between a monthly payment, a line of credit, or a one-time payment, you can get a loan amount determined by your equity. The loan does not have to be repaid until the homeowner sells the home, moves out, or passes away. You or your estate representative has to pay back the reverse mortgage amount, interest accrued, and finance charges at the time your home is sold, or you are no longer living in it.

Who is Eligible?

The requirements of a reverse mortgage loan generally are being 62 or older, maintaining your property as your primary residence, and having a small remaining mortgage balance or having paid it off.

Reverse mortgages are advantageous for retired homeowners or those who are no longer working but have a need to add to their limited income. Social Security and Medicare benefits can't be affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed interest rates. The home is never at risk of being taken away by the lending institution or put up for sale against your will if you outlive your loan term - even if the current property value creeps under the balance of the loan. If you would like to find out more about reverse mortgages, feel free to call us at (805) 496-7500.

At Strategic Home Loans, Inc., we answer questions about reverse mortgages every day. Give us a call at (805) 496-7500.