Are you considering a Reverse Mortgage Loan to gain extra cash every month? Reverse Mortgage Loans are popular options for homeowners 62 and older looking for opportunities to supplement their retirement income. To qualify, you must own your home, be 62 or older, and have enough equity in your home. Most residences qualify. CSMC Mortgage shares free classes on Reverse Mortgage Loans for residents of Ventura County and Los Angeles County. You can RSVP for the next one, on August 2, 2018, here.
As with any program, product or service, it’s common for myths to circulate about Reverse Mortgage Loans that simply are not true.
Let’s debunk the 5 most popular myths right now:
Fiction: With a reverse mortgage, you are selling your house to the bank.
Fact: Borrowers never give up the title or ownership of their home.
Fiction: Reverse mortgages are costly and have high fees.
Fact: Interest rates are comparable to conventional FHA rates, and fees vary by lender.
Fiction: When the loan balance grows bigger than the home value, the borrower is on the hook for the difference.
Fact: A reverse mortgage is a non-recourse loan and a borrower/estate will never owe the lender more than the current value of the home.
Fiction: You must own your home free and clear to qualify for a reverse mortgage.
Fact: Most borrowers use loan proceeds to pay off an existing mortgage.
Fiction: Reverse mortgages are a loan of last resort.
Fact: Most borrowers use a reverse mortgage line of credit as a safety net to draw on in case of emergencies.
Ready to get more info on reverse mortgage loans?
Come to our free Community Education Session on Reverse Mortgage Loans, Retirement Planning and Family Trusts on Thursday, August 2nd. This seminar will begin at 5:00 PM and will be held at the Simi Valley Public Library. Homeowners aged 62+ and their family are encouraged to attend. View details and RSVP here or copy and paste this link into your browser: https://csmcmortgage.com/rm/
The City of Simi Valley is not sponsoring or endorsing this program or any goods or services offered.
Equal Housing Lender © 2018 Customer Service Mortgage Corporation dba CSMC Mortgage, 4353 Park Terrace Drive, #100, Westlake Village, CA 91361, 805-212-7710. NMLS ID #1570216. (www.nmlsconsumeraccess.org), DRE #02021660. These materials are not from HUD or FHA and were not approved by HUD or a government agency. Consult a tax advisor on the usage of loan proceeds and tax implications. A reverse mortgage loan increases the principal mortgage loan amount and decreases home equity (it is a negative amortization loan). Borrowers are responsible for paying property taxes, homeowner’s insurance, maintenance, and related taxes (which may be substantial). A set-aside account can be set up to pay taxes and insurance and may be required in some cases. The home must be occupied as the primary residence. The loan becomes due and payable (and the property may be subject to a tax lien, other encumbrance, or foreclosure) when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes, insurance payments, or maintenance, or does not otherwise comply with the loan terms. Contact CSMC Mortgage for more information.