Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to tap into home equity without the necessity of selling their home. The lending institution gives you money based on your home equity amount; you get a lump sum, a monthly payment or a line of credit. Repayment isn't necessary until after the borrower puts his home up for sale, moves (such as to a care facility) or passes away. You or your estate representative has to pay back the reverse mortgage loan, interest , and finance fees at the time your property is sold, or you can no longer call it your primary residence.
The requirements of a reverse mortgage loan often are being 62 or older, maintaining your property as your primary residence, and having a small balance on your mortgage or having paid it off.
Reverse mortgages are advantageous for retired homeowners or those who are no longer bringing home a paycheck but have a need to supplement their income. Social Security and Medicare benefits won't be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. Your lending institution cannot take away your house if you outlive your loan nor may you be forced to sell your home to pay off the loan even if the balance is determined to exceed property value. Call us at (562) 693-5048 if you would like to explore the benefits of reverse mortgages.
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