Reverse Mortgages:the Facts

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Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to benefit from their equity without having to sell their home. The lender gives you funds based on your home equity amount; you receive a one-time amount, a payment every month or a line of credit. Paying back the loan is not necessary until after you put your home up for sale, move (such as to a retirement community) or pass away. At the time your home sells or you no longer use it as your primary residence, you (or your estate) have to pay back the lending institution for the money you obtained from the reverse mortgage plus interest among other finance charges.

Who is Eligible?

The conditions of a reverse mortgage loan often include being sixty-two or older, maintaining your home as your primary residence, and holding a low balance on your mortgage or owning your home outright.

Reverse mortgages are appropriate for retired homeowners or those who are no longer working but have a need to add to their limited income. Interest rates may be fixed or adjustable while the funds are nontaxable and don't interfere with Medicare or Social Security benefits. Your residence can never be in danger of being taken away by the lender or sold without your consent if you live longer than your loan term - even if the current property value creeps under the loan balance. Contact us at 760.975.0255 to discuss your reverse mortgage options.

American Capital Home Loans can answer questions about reverse mortgages and many others. Give us a call: 760.975.0255.