Reverse mortgages (also called “home equity conversion loans”) give older homeowners the ability to tap into equity without selling their home. Choosing between a monthly amount, a line of credit, or a one-time payment, you may receive a loan based on your home equity. Repayment is not required until the time the borrower puts his home up for sale, moves (such as into a retirement community) or dies. You or representative of your estate is required to pay back the reverse mortgage funds, interest accrued, and finance charges at the time your property is sold, or you are no longer living in it.
Are you Eligible?
The requirements of a reverse mortgage usually are being 62 or older, maintaining your house as your primary living place, and having a small balance on your mortgage or owning your home outright.
Reverse mortgages can be appropriate for homeowners who are retired or no longer working and have a need to add to their income. Social Security and Medicare benefits will not be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. Your lender will not take away your home if you live past the loan term nor can you be forced to sell your home to pay off your loan even when the loan balance is determined to exceed property value. Contact us at 503.422.6013 to discuss your reverse mortgage options.