Reverse Mortgages:the Facts

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Reverse mortgages (also called "home equity conversion loans") enable older homeowners to use their built-up home equity without having to sell their home. Deciding how you'd like to to receive your funds: by a monthly amount, a line of credit, or a lump sum, you can take out a loan amount determined by your equity. Repayment isn't required until after the homeowner sells the home, moves (such as to a care facility) or passes away. You or an estate representative has to pay back the reverse mortgage amount, interest accrued, and other finance fees after your house is sold, or you are no longer living in it.

Who is Eligible?

Generally, reverse mortgages are available for borrowers at least sixty-two years of age, have a small or zero balance in a mortgage and maintain the property as your main living place.

Reverse mortgages can be great for homeowners who are retired or no longer working but have a need to add to their income. Social Security and Medicare benefits are not affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed rates. The home can never be in danger of being taken away from you by the lender or sold without your consent if you outlive your loan term - even if the current property value dips under the loan balance. Contact us at (808) 935-0678 if you'd like to explore the benefits of reverse mortgages.

Family Mortgage Company of Hawaii, Inc. NMLS #244497 can answer questions about reverse mortgages and many others. Give us a call at (808) 935-0678.