People can start to save for their post-retirement life when they start their professional life, because they understand the need to secure the golden period of their life financially. Another investment that most people are able to make is buying a house. They can pay off mortgage payments for many years in expectation of owning their own home. Owning a house means owning an asset that you can fall back on in times of financial need.

Post retirement, when people are finding it hard to live on the post retirement money saved up. In Cerritos people can consider selling their home if it helps them financially. While it may seem like a good option, practically, selling your home and relocating once you have crossed the age of 62 can be hard.

Keep Your Home and Get Money on It

There is another way to harness the equity in your cash other than selling the home, if you have crossed the age of 62 and it is called reverse mortgage in Cerritos.  A reverse mortgage is unlike other loan products in a number of ways. A reverse mortgage is designed specifically for people 62 and older. As part of a reverse mortgage, the borrower is allowed to withdraw mortgage against the equity of their home, while keeping the ownership and possession of the home as long as they maintain their required property tax and insurance payments and proper upkeep of the home.

The borrower is not required to make mortgage payments except for the usual payments for insurance and property tax and maintenance on the home. The mortgage and the interest charged on the mortgage is due only after the borrower decides to move out of the house or passes away. In both cases the proceeds of sale from the house are used for the repayment.  Any excess funds go to the borrower or their estate, however they are not responsible if the proceeds from the sale do not fully pay off the mortgage as it is a non-recourse loan.

The mortgage can be drawn flexibly either upfront as a lump some, over time as a line of credit or monthly as tenure payments. If you are interested in a  reverse mortgage in Cerritos, contact us today!

This material is not from HUD or FHA and has not been approved by HUD or a government agency.

As with any loan there are risks associated with a reverse mortgage.  The right to remain in your home is contingent on complying with reverse mortgage loan terms and it is possible to lose your home if you do not comply with the terms of the reverse mortgage such as keeping current with property taxes, insurance and maintenance costs.