In today’s Living Akamai Segment, Kay Mukaigawa of Engel and Volkers invited Nelson Oyadamari on the show to share information about Reverse Mortgages. Nelson is the branch manager of Primary Residential Mortgage.
“A Reverse Mortgage is a federally insured home loan that allows homeowners aged 62 or more, the ability to convert a percentage of their home equity into tax-free cash. The #1 benefit of a Reverse Mortgage is that monthly loan payments are optional. You still have to make other housing-related payments like property tax and homeowner’s insurance, but the Reverse Mortgage allows you to use your retirement income for things other than a mortgage payment. When you bought your home, you established a purchase price, put a down payment, and got a traditional mortgage to finance the rest. Each month, part of your mortgage payment was used to pay down the loan balance, and hopefully, now that you’re retired, you have very low balance, or you paid it off entirely. You’ve built up a lot of equity, or value, in your home.
When you apply for a Reverse Mortgage, we analyze this equity, and based on your age, we determine how much money can be given to you. If you opt to NOT make a mortgage payment, the interest due on the loan, is added to the balance, and over time, your balance will increase.
When the last surviving spouse either passes away, or permanently moves out of the home, the entire loan balance becomes due.”
If you want more information on Reverse Mortgages or would like to speak to Nelson to see if it should be part of your overall retirement strategy, please call (808) 725-2000. You can also visit evrealestate.com