Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to use their home equity without having to sell their home. Choosing between a monthly payment, a line of credit, or a one-time payment, you may receive a loan amount determined by your equity. Paying back your loan is not required until the time the homeowner sells the home, moves (such as into a retirement community) or dies. You or representative of your estate is required to pay back the reverse mortgage amount, interest , and other finance charges at the time your home is sold, or you are no longer living in it.
The conditions of a reverse mortgage generally are being 62 or older, using the home as your main residence, and having a low balance on your mortgage or owning your home outright.
Reverse mortgages can be ideal for retired homeowners or those who are no longer bringing home a paycheck and must add to their fixed income. Social Security and Medicare benefits won't be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. Your lender isn't able to take the property away if you live past the loan term nor may you be forced to sell your home to pay off your loan even if the loan balance is determined to exceed property value. Contact us at (562) 693-5048 if you'd like to explore the benefits of reverse mortgages.
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