Only a handful of cities in Los Angeles County are able to rival the city of Monrovia. Not only is the city a nice place for tourists and people from all over the US to visit, it is also home to a considerable number of older residents who have worked tirelessly all their lives. Most people invest their life’s savings to buy a home, because it is considered a safe financial bet. If you are a retiree living in your home, you will be surprised at the equity of your home.

With time property prices have risen, which has meant that your home may now be worth much more than what you initially bought it for. The difference in what you bought it for and what it is now is called increased equity. What can you do with all this equity? Instead of waiting for you to sell the home and enjoying the added equity, you can withdraw it using a reverse mortgage.

A reverse mortgage in Monrovia isn’t the hardest to understand. Called a reverse mortgage because it is slightly different to other home mortgages, it is backed by the Federal Housing Authority and is designed to cater to people over the age of 62. The loan is specifically directed for use to people who are over the age of 62.

As part of the mortgage, as long as the retiree is living in the house, they are not required to make any payments on the loan, though the borrower is required to make property tax and insurance payments and maintain the condition of the home. You are required to repay the loan  only when you decide to relocate from the home or you and your spouse die or if you fall behind on property taxes, insurance or maintenance. The proceeds of sale after the house is sold are used for this purpose and any amount left after the deduction of the loan amount and the interest charged on it, is returned to the retiree or their heir.

If you want information on a reverse mortgage in Monrovia, 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.