Is a Reverse Mortgage Right for You?

With the downturn in the housing market, you may be wary of the word "mortgage." Especially if you've already paid off your house, or are close to it. But a reverse mortgage might make sense if you've lived in your home a long time and plan to stay. You can tap into the equity of your home for travel expenses or to supplement your income – and not make any payments while you still live there.

How Does It Work?
To qualify for a reverse mortgage, you must be 62 years of age or older. This is a non-recourse loan, which means the repayment amount never exceeds the value of the home. The amount available is based on your age, the value of your home, the home's location and the interest rate.

A reverse mortgage allows borrowers to convert their home equity into cash, either in a lump sum, as monthly payments of a set amount of money, or a line of credit that can be accessed as needed. The loan does not require repayment until the homeowner sells the house, moves out, or passes away.

To learn more about taking advantage of the equity in your home, call Valerie Metz at (818) 565-2002, Roselie Sabino at (818) 565-2519, or visit our website at www.lfcu.com.