Reverse mortgage loans are a popular financing option in Paso Robles, California, allowing senior homeowners to tap into their home’s equity.
The most popular type of reverse mortgage is the Federal Housing Authority (FHA)-insured Home Equity Conversion Mortgage (HECM) loan. Unless noted otherwise, we’re referring to HECMs when discussing reverse mortgages.
How Does a Reverse Mortgage Loan Work?
Reverse mortgage loans allow homeowners 62+ to access a portion of their home equity without having to make monthly mortgage payments, so long as the borrower takes care of property charges, like insurance, taxes and upkeep.
Reverse mortgages are a great option for seniors in Paso Robles, California, who want to stay in their homes, but also want additional cash flow. The funds from a reverse mortgage can be used for any purpose, including home improvements, medical expenses or having more fun in retirement.
Reverse mortgages are available to homeowners age 62 and older who own their home outright or have a low mortgage balance that can be paid off at closing with proceeds from the reverse mortgage loan.
Reverse Mortgage Benefits
People get reverse mortgages for many reasons, including:
Supplemental Cash Flow
A reverse mortgage loan can provide a consistent and reliable source of cash flow for seniors, helping them maintain their quality of life and cover living expenses, such as medical bills, home maintenance and leisure activities.
Non-recourse Loan
Reverse mortgages are non-recourse loans, meaning that if the loan balance exceeds the home’s value when it’s time to repay the loan, the borrower or their estate is not responsible for the difference.* This can provide peace of mind for both borrowers and their families.
No Monthly Mortgage Payments
One of the most appealing aspects of a reverse mortgage loan is that borrowers are not required to make monthly mortgage payments. They only need to pay for property-related expenses like taxes, insurance and home upkeep, helping ease financial stress and free up cash for other expenses or savings.
Tax-free Proceeds
The proceeds from a reverse mortgage are tax-free as they are considered loan proceeds and not income. This can be an important benefit for seniors on a fixed income, as it allows them to retain more money for other purposes.**
Flexibility
Reverse mortgages offer various disbursement options, such as a lump sum, monthly payments or a line of credit where unused funds grow over time. This flexibility lets borrowers choose the option that best meets their financial needs and goals, giving them greater control over their finances.
Remain in Your Home
A reverse mortgage loan allows seniors to continue living in their homes, maintaining a sense of independence and familiarity with their community. This can be especially beneficial in Paso Robles, known for its pleasant climate, wine country and vibrant arts scene.
Interested in a Reverse Mortgage in Paso Robles?
Fill out this form and we’ll get back to you ASAP!
*This advertisement does not constitute tax or financial advice. Please consult a tax and/or financial advisor regarding your specific situation.**There are some circumstances that will cause the loan to mature and the balance to become due and payable. Borrower is still responsible for paying property taxes and insurance and maintaining the home. Credit subject to age, property and some limited debt qualifications. Program rates, fees, terms and conditions are not available in all states and subject to change.