With a reverse mortgage (also referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without selling their homes. The lender gives you funds determined by the equity you've built-up in your home; you get a one-time amount, a monthly payment or a line of credit. Repayment isn't required until the time the homeowner puts his home up for sale, moves (such as into a care facility) or dies. At the time your home has been sold or is no longer used as your primary residence, you (or your estate) have to repay the lender for the funds you received from your reverse mortgage in addition to interest among other finance charges.
Typically, reverse mortgages require youto be at least 62 years old, have a small or zero balance owed against your home and use the house as your principal living place.
Many homeowners who are on a fixed income and have a need for additional funds find reverse mortgages advantageous for their situation. Social Security and Medicare benefits are not affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed rates. Your lender can't take the property away if you live past the loan term nor may you be required to sell your home to repay the loan amount even if the balance is determined to exceed current property value. Contact us at (808) 935-0678 to discuss your reverse mortgage options.
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.