In a reverse mortgage (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without having to sell their homes. The lender pays you money based on the equity you've accrued in your home; you get a lump sum, a payment each month or a line of credit. The loan does not have to be repaid until the homeowner sells his residence, moves out, or dies. When you sell your home or you no longer use it as your main residence, you (or your estate) are obligated to repay the lender for the cash you received from the reverse mortgage plus interest and other finance charges.
The conditions of a reverse mortgage typically are being sixty-two or older, maintaining the house as your primary living place, and having a small remaining mortgage balance or owning your home outright.
Homeowners who are on a limited income and have a need for additional funds find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits can not be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. The lending institution is not able to take away your property if you live past the loan term nor can you be made to sell your residence to pay off your loan even when the balance is determined to exceed current property value. Contact us at (808) 935-0678 to explore 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.