In a reverse mortgage loan (also called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. The lender pays out funds based on the equity you've accrued in your home; you receive a one-time amount, a monthly payment or a line of credit. The loan doesn't have to be paid back until the borrower sells the residence, moves out, or passes away. After your house sells or is no longer used as your main residence, you (or your estate) are required to repay the lender for the money you got from your reverse mortgage as well as interest and other finance charges.
The requirements of a reverse mortgage often are being sixty-two or older, using the house as your primary residence, and having a low remaining mortgage balance or having paid it off.
Many homeowners who live on a limited income and need additional funds find reverse mortgages advantageous for their situation. Interest rates can be fixed or adjustable while the funds are nontaxable and do not interfere with Social Security or Medicare benefits. Your home is never at risk of being taken away from you by the lender or sold against your will if you live longer than your loan term - even if the current property value creeps below the loan balance. Contact us at 562 320-0510 to discuss your reverse mortgage options.
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