How Reverse Mortgage Works

After years of paying down or paying off your mortgage you have built up equity in your home. A reverse mortgage in Thousand Oaks allows you to borrow that equity on your Thousand Oaks home. The reverse mortgage loan doesn’t have to be paid off until you move from the house, the last borrower passes on, or you sell the house.

You can stay in the house as long as you want and you will never have to pay more than the house is worth.

Features of Reverse Mortgages

Reverse Mortgage Pros

Provides either a monthly, lump sum, or combination of money

The money is tax free

Pays off existing liens

Homeowner stays in the home as long as they want without making any mortgage payments

If the payoff balance exceeds the home’s value the heirs are not responsible for paying
the balance

If there is equity after the reverse mortgage is paid then the heirs inherit it.

Reverse Mortgages Cons

The fees for a reverse mortgage are higher than conventional loans

The equity in the home will decrease as the money is given out depending on the kind of reverse mortgage is selected

Reverse Mortgages are not well understood by the general public