Reverse mortgage in West Covina is becoming a popular option for senior citizens to tap into their home equity. One of the driving forces behind reverse mortgage in Los Angeles County in general and in the city of West Covina in particular is that these mortgages are backed by FHA.

People over the age of 62 can always do with more money. If they have bought a home, they are most likely to stay in it for the rest of their life. If that is the case, they are likely to miss out on the equity that has developed in their homes over a number of years. Not many people realize it, but the home that they purchase will experience either an increase or decrease in equity over the years and in most cases the change in equity is positive.

Understanding Reverse Mortgage

Revere mortgage in West Covina isn’t the hardest of concepts to understand and master. Here are a few pointers to help you understand a reverse mortgage:

  • Only people over the age of 62 can use this option to withdraw equity from their homes.
  • There is no need to repay the loan as long as the Retiree and their spouse are living in the home as long as property taxes, insurance payments and maintenance costs are kept current.
  • Once they decide to leave or they die, the house will then be sold and the proceeds of sale used for repayment of the mortgage.
  • The mortgage can be paid to the borrower in a flexible way, allowing the borrower to make a flexible financial plan.

If you want more information on a reverse mortgage in West Covina, 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.