San Diego Homeowners Turning to Reverse Mortgage to Pay for Retirement
Many California homeowners are facing retirement without enough savings. Rising health costs and longer life spans are requiring even more money. 62+ homeowners are turning to Reverse Mortgages for relief.
What is a Reverse Mortgage?
A Reverse Mortgage is an option reserved only for those 62 and older who have a decent amount of equity in their home. This mortgage option allows older homeowners to tap into their equity without making a monthly mortgage payment or selling their home. Sound too good to be true? Believe it or not, it’s legit. Reverse mortgages are a highly-regulated mortgage option offered by reputable banks and lenders like Intercap Lending.
How does a Reverse Mortgage work?
You can use the cash from your equity to improve your lifestyle. You’ll continue to live in your home and retain ownership without monthly mortgage payments. The loan balance is repaid when the last borrower or non-borrowing spouse has left the home. Ownership can still be passed to heirs.
The amount you receive is based on the age of the youngest borrower or eligible non-borrowing spouse, appraised value of the home, and current interest rates.
Common uses of a reverse mortgage?
The proceeds from a reverse mortgage can be used for almost anything.
- Eliminate monthly mortgage payments
- Make retirement savings last longer
- Use a “standby” HECM reverse mortgage growing line of credit to preserve investment accounts during market downturns or build a safety net for unplanned emergencies, home repairs, and healthcare expenses
- Supplement your retirement income with monthly payments
- Use a HECM for Purchase (H4P) to buy a home that better fits your needs
- Support aging in place expenses, like caregiving and home modifications