High value homes consider reverse mortgage instead of selling

Many of us in the Bay Area have seen our home values skyrocket. Selling may trigger a bundle of federal and state capital gain taxes (please consult your tax adviser). Additionally, selling your home may result in considerable Realtor fees and closing costs.

Want a possible better option? Don’t sell! Keep the home that you love and age in place. A reverse mortgage may help this dream become a reality.

If you need more cash but selling may cause a tax burden, a reverse mortgage may be a great option. The reverse mortgage can provide a significant amount of cash to help you live more comfortably in your home.

If you want to access some of your home equity and stay in your home, this may be a smart move.

A reverse mortgage is a loan that enables homeowners 62 or older to borrow against the equity in their home; you don’t give up title, or take on a new monthly mortgage payment. You must continue to pay property tax and homeowner insurance.

The money received can be used for any purpose. The loan amount depends on the borrower’s age, current interest rates and the value of the home.

Homeowner must remain current on property taxes and insurance. A reverse mortgage does not have to be repaid until the borrower sells or moves out of the home, and the repayment amount cannot exceed the value of the home.

After the loan is repaid, any remaining equity is distributed to the borrower or the borrower’s estate.

I know you have questions about reverse mortgages and I can provide you with advice.

Although I cannot give you tax advice, I am a CPA and a licensed loan officer.

For more information, call David Chee, CPA, NMLS ID#263222 at (800) 967-3575 at HighTechLending,Inc., Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. NMLS #7147. Equal Housing Lender. NMLS Consumer Access: www.nmlsconsumeraccess.org.

A reverse mortgage is a loan that enables homeowners 62 or older to borrow against the equity in their home; you don’t give up title, or take on a new monthly mortgage payment.