Reverse Mortgages

Reverse mortgages (also called "home equity conversion loans") enable older homeowners to use their equity without selling their home. The lending institution pays you money based on the equity you've built-up in your home; you receive a lump sum, a monthly payment or a line of credit. The borrowed money doesn't have to be repaid until the borrower sells the residence, moves out, or dies. You or representative of your estate must repay the reverse mortgage loan, interest accrued, and finance fees when your house is sold, or you are no longer living in it.

Who is Eligible?

Most reverse mortgages require youto be at least 62 years old, have a small or zero balance owed against your home and maintain the property as your principal living place.

Reverse mortgages can be helpful for retired homeowners or those who are no longer working and have a need to supplement their income. Interest rates can be fixed or adjustable and the money is nontaxable and does not interfere with Medicare or Social Security benefits. Your lender can't take the property away if you outlive your loan nor may you be obligated to sell your home to pay off the loan even if the loan balance grows to exceed current property value. Contact us at (510) 682-3792 if you want to explore the advantages of reverse mortgages.