You have heard that a home is an investment, but did you know that the equity in your home could potentially serve as a retirement asset?
Homeowners in and around Pasadena, CA who are looking to supplement retirement income or establish “stand-by” credit can consider taking out a reverse mortgage, generally a government-insured Home Equity Conversion Mortgage (HECM).
With a reverse mortgage, it is possible to release equity from your home. This equity can be used to pay bills, finance the purchase of another home, or cover other expenses as determined by the homeowner.
Capital Source Financial reverse mortgage experts can guide you through the process step-by-step, explaining how they work, the benefits, and the potential downsides. If you feel a Reverse Mortgage is right for you, we will help you apply and get approved quickly and easily.
Call (866) 303-7050 or click button below to get you started now.
Who Qualifies for a Reverse Mortgage?
- Age: At least one borrower must be 62 or older to qualify for a reverse mortgage.
- Ownership: You must own the property and possess at least 50% equity.
- Residence: You must live in the home as your primary residence.
- Maintenance: You are required to maintain your home to FHA standards and pay your property taxes, homeowners insurance, and any other property charges (i.e. HoA payments).
- Tax Payments: Your tax history will be analyzed and verified before you are accepted.
- Financials: Income and credit will be looked at as part of the qualification process for an HECM.
Reverse Mortgage Benefits
- Flexible options are available for disbursement of funds from your reverse mortgage.
- Your funds are available to use in whatever manner you choose. You can even use a reverse mortgage to pay on an existing mortgage. Other ideas include using the money to make improvements or repairs to your home, financing the purchase of another home, or simply supplementing your monthly income. You also can use this method to delay social security, allowing you to ultimately claim a larger benefit amount.
- A reverse mortgage may be tax free (be sure to consult a tax professional for details).
- Enjoy a more comfortable standard of living in the home that you love.
How Much Will You Get?
Depending on your specific situation and goals, your reverse mortgage can give you access to your equity in diverse ways to fit your needs.
If you would like to receive equal monthly payments if the borrower is living in the home as the primary residence, this is called “tenure.”
If you would like to receive equal monthly payments for a certain number of months, that is called “term.”
Generally, you can take out up to 60% of your initial principal limit in the first year.
Q: Do I have to pay back the reverse mortgage?
A: Yes. A reverse mortgage is a loan. You may pay it off at any time in full, or you have the option of waiting for a maturity event. This would include for example the death of the last borrower or a sale of the home.
Q: What happens when the loan closes or I die?
A: If you were the last surviving borrower, the loan will be due and payable by your heirs. If they do not wish to pay off the loan and keep the home, they must sell the home to repay it. If you have a surviving spouse, whether the loan is due depends on your spouse’s status.
Q: Why consider a reverse mortgage instead of a home equity line of credit (HELOC)?
A: A reverse mortgage requires no monthly mortgage payments, and offers you more flexibility than a HELOC. Your lender also cannot revoke, reduce or freeze your reverse mortgage so long as you are compliant with all terms.
Get started with your reverse mortgage by contacting Capital Source Financial today. We will confirm your eligibility, guide you through your options, and help you apply for and receive your reverse mortgage without delay.
Click button below or call (866) 303-7050 to get started now.