El Segundo is one of the few cities in Los Angeles County that offers natural beauty, humble people and bristling neighborhoods to anybody willing to spend the rest of their days in the city. It is also home to hundreds of hard working residents who have worked all their lives. Once a person retires they are free of the hassles of work, the constant scheduling, etc. However once you retire tapping into some of your home equity with a reverse mortgage may be a good financial option.

A reverse mortgage is different than other loan products because it does not require the borrower to make monthly repayments of the amount mortgaged except for required property tax and insurance payments and costs to maintain the home. The loan repayment is put on hold until after the house is left by the borrower or the borrower passes away. In such a situation the money earned from the sale of the house is used to repay the mortgage, with any excess proceeds available to the heirs.  Also because it is a non-recourse loan if there is any shortfall from the sale of the home, the heirs are not responsible for paying it.

Despite there being no need to repay the mortgage amount during the borrower’s stay in their home, because they have the ownership of the home, they are required to pay property taxes, insurance and maintenance costs for the home.

If you want information on a reverse mortgage in El Segundo, or would want to talk about your financial plans with us and how a reverse mortgage can help you with it, hurry up and 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.