If you are living on a fixed income during retirement, one way you can increase financial flexibility in your life is to apply for a reverse mortgage.
With this type of loan, you can pad your income with funds that are yours to use in any way you choose.
What is a Reverse Mortgage?
Reverse mortgages are loans that allow you to borrow against your home equity, leveraging the investment you have made in your home.
This type of mortgage is exclusively for senior borrowers.
At no point do you risk losing your home with a reverse mortgage; you can say in it for as long as you want.
You can decide if you want to receive the income from the reverse mortgage as a lump sum, a set of installment payments, or a line of credit.
Enjoy Financial Flexibility and Comfort During Retirement
You can do anything you want with the income from a reverse mortgage as there are no restrictions.
Here is just some of what you could do with the money from a reverse mortgage:
- Pad your savings for retirement.
- Have extra money available for everyday expenses.
- Pay off medical bills.
- Create an emergency fund.
- Put a down payment on a second home or vacation home.
- Make repairs or upgrades to your home.
- Repair or replace an automobile.
- Finance a personal project or a new business.
- Pay for education.
- Go on a trip.
San Diego Reverse Mortgage Benefits
- You are in control of how you use income from a reverse mortgage.
- With multiple options for disbursement, you can receive your reverse mortgage funds in the way that is most suitable for your needs.
- Usually, reverse mortgage income is not taxable (ask your tax consultant for more information).
- You can stay in your home as long as you want.
- The loan does not come due until a maturity event such as the death of the last borrower. Selling the home would also be a maturity event.
Who is Eligible for a California Reverse Mortgage?
The basic requirements to qualify for a reverse mortgage are as follows:
- At least one borrower must be 62 years old or above.
- You need to be current on all home maintenance payments.
- The equity you are borrowing against must be in your primary residence, not in a second home, vacation home, or investment property.
- You will need to meet requirements for your credit score, income and tax history.
During your consultation, we can review your financial details as well as information about your home equity to help you figure out whether you are eligible for a reverse mortgage.
Frequently Asked Questions About Reverse Mortgages in California
Q: Could I lose my home by taking out a reverse mortgage?
A: No. there is no possibility of losing your home. You can remain in it for the rest of your life.
Q: Will my heirs inherit my debt?
A: If the maturity event that makes the reverse mortgage come due is the death of the last borrower, your heirs will be responsible for the loan.
Your heirs will have two options. If they want to keep the home, they will need to pay off the reverse mortgage through other means. If they prefer to sell the home, they can use the proceeds to pay off the mortgage.
They will never owe more on the reverse mortgage than they would receive from the sale of the home.
So, if they are willing to sell the house, there is no concern they will be paying on the debt with their own money.
Apply for a Reverse Mortgage in San Diego or Anywhere in CA Now
Are you ready to increase your retirement income and enjoy the peace of mind that comes with financial flexibility?
Joshua Barton, Broker has helped seniors in San Diego and throughout California to apply successfully for reverse mortgages.
To find out if you qualify, please call us today at (760) 692-4662 to schedule your consultation.