The Hawthorne area in Los Angeles County is a city popular for its outgoing people, their welcoming nature and their humble lifestyle. They are among the hardest working people living in the County.

If you have retired from your job, you may be pleasantly surprised to learn that your home in Hawthorne  may be worth more than what you had actually paid for it back in the day. Property is one of the assets that can increase their equity over time. One way to tap into your home equity is getting a reverse mortgage. A reverse mortgage is a loan for people 62 and older made against the equity in your house. Unlike a traditional mortgage there are no mortgage payments required as long as you continue to live in the home and stay current with property taxes, insurance and maintenance costs.

This mortgage is repaid once the borrower dies and or leaves possession of the house. As long as the borrower is living in the home and current on property taxes, insurance and maintenance, they have ownership of the house. Upon their departure the house is sold and the proceeds of sale are used to repay the mortgage amount and the interest accrued.

Any proceeds of sale from the house that are left after the mortgage amount and the interest charged on it has been deducted, are handed over to the borrower or their heirs as a residual.

If you are looking for more information regarding reverse mortgage in Hawthorne or want to get creative with your financial planning, 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.