Reverse Mortgages:the Facts

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With a reverse mortgage (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without having to sell their homes. Choosing between a monthly payment amount, a line of credit, or a one-time payment, you can receive a loan based on your home equity. The borrowed money doesn't have to be paid back until the borrower sells the home, moves out, or passes away. You or an estate representative must pay back the reverse mortgage amount, interest accrued, and other finance fees when your house is sold, or you no longer live in it.

Who can Participate?

The conditions of a reverse mortgage loan normally include being sixty-two or older, using the property as your main living place, and holding a small balance on your mortgage or owning your home outright.

Reverse mortgages are ideal for homeowners who are retired or no longer bringing home a paycheck but must add to their limited income. Interest rates may be fixed or adjustable and the money is nontaxable and doesn't interfere with Medicare or Social Security benefits. The residence can never be at risk of being taken away by the lender or put up for sale without your consent if you live past your loan term - even if the property value dips below the balance of the loan. Contact us at (808) 935-0678 to look into your reverse mortgage options.

At Family Mortgage Company of Hawaii, Inc. NMLS #244497, we answer questions about reverse mortgages every day. Give us a call at (808) 935-0678.