Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to tap into built-up equity without selling their home. The lending institution pays you funds based on your home equity amount; you get a lump sum, a payment every month or a line of credit. Paying back your loan isn't necessary until the time the homeowner puts his home up for sale, moves (such as into a care facility) or dies. When you sell your home or is no longer used as your main residence, you (or your estate) must repay the lending institution for the money you got from the reverse mortgage as well as interest among other finance charges.
Usually, reverse mortgages are available for borrowers who are at least sixty-two years of age, have a small or zero balance owed against your home and use the property as your main residence.
Reverse mortgages are advantageous for homeowners who are retired or no longer working and need to add to their income. Social Security and Medicare benefits can not be affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed interest rates. Your residence is never at risk of being taken away by the lending institution or sold without your consent if you live past the loan term - even if the current property value creeps below the balance of the loan. Call us at (562) 693-5048 to look into your reverse mortgage options.
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