Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to use their built-up home equity without the necessity of selling their home. The lending institution gives you money determined by the equity you've accrued in your home; you get a lump sum, a payment each month or a line of credit. The borrowed money does not have to be repaid until the borrower sells the residence, moves away, or dies. You or an estate representative has to repay the reverse mortgage amount, interest , and other finance fees at the time your home is sold, or you can no longer call it your primary residence.
Generally, reverse mortgages are offered to borrowers at least 62 years old, have a low or zero balance owed against your home and maintain the house as your main residence.
Reverse mortgages can be appropriate for homeowners who are retired or no longer working but need to supplement their fixed income. Rates of interest can be fixed or adjustable and the funds are nontaxable and do not interfere with Social Security or Medicare benefits. The home will never be at risk of being taken away by the lender or sold against your will if you outlive the loan term - even if the current property value goes under the balance of the loan. Call us at (808) 935-0678 to explore your reverse mortgage options.
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