Also called a HECH or home equity conversion mortgage, a reverse mortgage is a loan that you can use to turn your home equity into cash.
Why you need one?
In the right circumstances, a home equity conversion mortgage can help you get the financial help you need to meet your expenses, the Investopedia says. For instance, you may want to help out a relative, send your grandchild to school or cover the repair costs necessary to put your home back to rights after a storm, flooding or fire. Taking out a HECHM loan can be the right financial move for you.
When do I pay?
The loan is only repaid if you move out of the home you used for the loan or when you pass away. This makes it an excellent financial tool for a lot of retired homeowners who live on a fixed income.
Is it right for me?
This loan isn’t right for everyone. But if you don’t plan on moving to anywhere and can afford to pay for the upkeep and maintenance of your home, then this is a sound option to consider. Also, if you want to use up the equity in your home to boost your income or have enough money saved up for an emergency, then you’ll want to start looking for reverse mortgage companies in Palm Desert and book a consultation.
Do I qualify?
Not everyone can take out a HECM loan, though. You need to be at least 62 years of age, own the home and use that property as your primary residence. You must also have enough in your bank account to handle the cost of property maintenance and taxes. To know more about whether you qualify or not, reach out to reverse mortgage companies in Palm Desert and ask.