Reverse Mortgages:the Facts

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With a reverse mortgage (also called 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 funds: by a monthly amount, a line of credit, or a lump sum, you may take out a loan amount determined by your home equity. The borrowed money doesn't have to be repaid until the homeowner sells his home, moves out, or dies. You or your estate representative must pay back the reverse mortgage funds, interest , and finance fees at the time your property is sold, or you no longer live in it.

Who is Eligible?

The requirements of a reverse mortgage generally are being 62 or older, using the house as your main residence, and having a low balance on your mortgage or having paid it off.

Reverse mortgages can be great for homeowners who are retired or no longer working but must supplement their fixed income. Social Security and Medicare benefits won't be affected; and the money is nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. The house will never be at risk of being taken away from you by the lending institution or sold without your consent if you live past the loan term - even if the current property value dips under the loan balance. Contact us at (808) 935-0678 if you want to explore the advantages of reverse mortgages.

Family Mortgage Company of Hawaii, Inc. NMLS #244497 can walk you through the pitfalls of getting a reverse mortgage. Call us at (808) 935-0678.