Home Equity Conversion MTG (HECM)

Reverse Mortgages: The Facts

Reverse mortgages (also called “home equity conversion loans”) enable older homeowners to tap into home equity without selling their home. Deciding how you would like to to receive your funds: by a monthly amount, a line of credit, or a one-time payment, you may get a loan based on your equity. The borrowed money doesn’t have to be paid back until the borrower sells his residence, moves out, or passes away. After you sell your property or is no longer used as your main residence, you (or your estate) have to repay the lending institution for the cash you obtained from the reverse mortgage plus interest among other finance charges.

Are you Eligible?

The conditions of a reverse mortgage typically include being sixty-two or older, using the home as your primary living place, and holding a low remaining mortgage balance or having paid it off.

Homeowners who are on a limited income and find themselves needing additional funds find reverse mortgages ideal for their situation. Interest rates may be fixed or adjustable while the funds are nontaxable and do not interfere with Medicare or Social Security benefits. Your lending institution cannot take away your house if you outlive your loan nor can you be made to sell your home to pay off the loan even if the balance is determined to exceed current property value. Call us at 916-920-7000 to discuss your reverse mortgage options.