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“Family Funding got me a rate that was much lower than I was quoted by other lenders.” P.E., Auburn “I felt like one of MY family members handled my closing. You made it so quick and easy! Thank you Family Funding.” L.B. Rocklin |
Reverse Mortgage loans are for seniors, aged 62 and older. Thousands of people have used this loan method to supplement their retirement incomes. This program is a loan against your home that allows you to convert the equity into cash.
Whether you are seeking money to finance a home improvement, pay off a current mortgage, supplement retirement income, or pay for healthcare expenses, many are turning to “reverse” mortgages. These allow older homeowners to convert part of the equity in their homes into cash without having to sell their homes or take on additional monthly bills.
In a “regular” mortgage, you make monthly payments to the lender. But in a “reverse” mortgage, you receive money from the lender and generally don’t have to pay it back for as long as you live in your home. Instead, the loan must be repaid when you die, sell your home, or no longer use it as your principal residence. It is important to realize that your heirs are still entitled to the remaining equity. Reverse mortgages can help homeowners who are house-rich but cash-poor stay in their homes and still meet their financial obligations.
Use your Reverse Mortgage to:
- Pay off an existing mortgage in order to eliminate monthly payments
- Pay off existing bills such as credit card debt
- Make home repairs
- Or simply enjoy your golden years with financial independence while receiving a monthly income!
Reverse mortgages (also called home equity conversion loans) enable elderly homeowners to tap into their equity without selling their home. The lender pays you money based on the equity you've accrued in your home; you receive a lump sum, a monthly payment or a line of credit. Repayment is not necessary until the borrower sells the property, moves into a retirement community or passes away. When you sell your home or no longer use it as your primary residence, you or your estate must repay the cash you received from the reverse mortgage plus interest and other finance charges to the lender.
Most reverse mortgages require you be at least 62 years of age, have a low or zero balance owed against your home and maintain the property as your principal residence.
Reverse mortgages are ideal for homeowners who are retired or no longer working and need to supplement their income. Interest rates can be fixed or adjustable and the money is nontaxable and does not interfere with Social Security or Medicare benefits. Your lender cannot take property away if you outlive your loan nor can you be forced to sell your home to pay off your loan even if the loan balance grows to exceed property value.