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In a reverse mortgage loan (also referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. Deciding how you prefer to to receive your money: by a monthly amount, a line of credit, or a one-time payment, you can get a loan based on your equity. The loan doesn't have to be repaid until the homeowner sells the home, moves out, or passes away. The homeowner is still responsible for paying taxes and insurance, as well as maintaining the home. At the time your home has been sold or you no longer use it as your primary residence, you (or your estate) have to pay back the lender for the funds you got from your reverse mortgage plus interest among other fees.
Who is Eligible?
Typically, reverse mortgages are available for borrowers who are at least 62 years old, have a low or zero balance owed against the home and maintain the house as your main living place.
Homeowners who live on a fixed income and need additional funds find reverse mortgages helpful for their situation. Social Security benefits are not affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed interest rates. Your residence will never be at risk of being taken away from you by the lending institution or sold without your consent if you live longer than the loan term - even if the current property value dips under the loan balance. You can not lose your home under normal circumstances, but please understand foreclosure may occur if you do not pay your taxes and insurance and otherwise comply with the loan terms. Contact us at 916-989-6222 to look into your reverse mortgage options.
These materials are not from HUD or FHA and were not approved by HUD or FHA.
At Sierra View Financial Corp, we answer questions about reverse mortgages every day. Give us a call: 916-989-6222.