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Reliable Source of Income
Tax Free
No Monthly Mortgage Repayments
Money can be used for any purpose
Monthly
Line of Credit
Lump Sum
Mix and Match
Area of services include
Pasadena, Irvine, andTorrance.
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The whole point of taking out a reverse mortgage on your home is to get money from the equity in your home. How much can you tap? That amount depends mostly on your home worth, your age, and the interest and other fees a given lender charges. The more your home is worth, the older you are, and the lower the interest rate and other fees your lender charges, the more money you should realize from a reverse mortgage.
- For all but the most expensive homes, the federally insured Home Equity Conversion Mortgage ( HECM ) generally provides the most cash and is available in most state.
- In general, the most cash goes to the oldest borrowers living in the homes of greatest value at a time when interest rates are low. On the other hand, the least cash generally goes to the youngest borrowers living in the homes of the lowest value at the time when interest rates are high.
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But remember, the total amount of cash you actually end up getting from a reverse mortgage depends on how it’s paid to you plus other factors. You can choose among the following options to receive your reverse mortgage money.
- Monthly: Most people need monthly income to live on
- Line of credit: Rather than receiving a monthly check, you can simply create a line of credit from which you draw money by writing a check whenever you need income.
- Lump Sum: the third, and generally least beneficial, type of reverse mortgage is the lump-sum option. When you close on this type of reverse mortgage, you receive a check for the entire amount that you were approved to borrow.
- Mix and Match: perhaps you need a large chunk of money for some purchase you’ve been putting off, but you also want the security of a regular monthly income.
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