Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to use their equity without having to sell their home. Deciding how you would like to be paid: by a monthly payment, a line of credit, or a lump sum, you can get a loan amount determined by your home equity. The loan does not have to be repaid until the homeowner sells the home, moves out, or dies. At the time your house sells or is no longer used as your primary residence, you (or your estate) must repay the lender for the money you obtained from the reverse mortgage as well as interest among other finance charges.
The conditions of a reverse mortgage loan generally are being 62 or older, using the property as your main living place, and holding a low remaining mortgage balance or having paid it off.
Reverse mortgages can be ideal for retired homeowners or those who are no longer working and have a need to supplement their limited income. Rates of interest may be fixed or adjustable and the funds are nontaxable and don't interfere with Social Security or Medicare benefits. Your lender can't take the property away if you outlive your loan nor will you be made to sell your home to repay the loan even when the balance grows to exceed current property value. Call us at (808) 935-0678 to explore your reverse mortgage options.
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