Reverse mortgages (also called "home equity conversion loans") give older homeowners the ability to use their home equity without selling their home. The lending institution gives you money based on the equity you've built-up in your home; you receive a lump sum, a payment every month or a line of credit. Paying back your loan isn't required until the time the borrower puts his home up for sale, moves (such as to a retirement community) or dies. At the time your home sells or is no longer used as your primary residence, you (or your estate) are obligated to pay back the lending institution for the funds you got from the reverse mortgage as well as interest and other finance charges.
The requirements of a reverse mortgage loan generally are being sixty-two or older, using the home as your primary living place, and holding a small balance on your mortgage or owning your home outright.
Reverse mortgages are appropriate for homeowners who are retired or no longer working and need to add to their limited income. Interest rates may be fixed or adjustable while the funds are nontaxable and do not interfere with Social Security or Medicare benefits. The lender will not take away your property if you outlive your loan nor can you be forced to sell your home to pay off the loan amount even when the loan balance is determined to exceed current property value. Call us at 562 320-0510 to explore your reverse mortgage options.
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