Old age is supposed to be a blessing. It is a time in our lives when we are free of professional commitments and we can dedicate our time to our favorite past times, relaxation and enjoy life in general. Unfortunately, money plays an important role in determining the state of your retirement. While most people can make savings in their professional life to ensure their post retirement life goes on well, unforeseen expenses can decrease the amount saved up and force people over 62 to compromise their lifestyle according to their finances.

The only way out of this situation is to withdraw equity from your home. When you are over 62, your home is the only real asset you have saved up. With the passage of time the amount of equity in the home can increase. This means your home will be worth more than what you paid for it. This equity can be withdrawn to ease your financial woes using a reverse mortgage in La Habra Heights. These mortgages are tailor made for people over the age of 62.

The primary driving force behind reverse mortgage in La Habra Heights is that people who have gone past their retirement cannot be expected to repay a loan over several monthly installments; it would be too great a burden on them. Instead, as part of this mortgage, you are able to withdraw the loan amount in monthly payments or lump sum payments and only have to repay it once you pass away or you move out of the home, however you do remain responsible for paying property taxes, insurance and maintenance costs for the home.

The repayment works simply, you don’t have to pay anything as long as you are living in the house, except for insurance and property tax and maintenance of the home. Once you die or move out, the house is sold, the proceeds of sale are used to pay off the principal mortgage amount and the interest that was charged on it.

If you want more information on a reverse mortgage in La Habra Heights, 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.