In a reverse mortgage (sometimes called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. The lender gives you money determined by the equity you've accrued in your home; you receive a lump sum, a payment each month or a line of credit. The loan doesn't have to be repaid until the borrower sells his home, moves out, or passes away. You or your estate representative has to repay the reverse mortgage amount, interest accrued, and finance charges when your property is sold, or you are no longer living in it.
The requirements of a reverse mortgage loan typically are being sixty-two or older, maintaining your home as your primary living place, and holding a low remaining mortgage balance or having paid it off.
Many homeowners who are on a limited income and have a need for additional money find reverse mortgages helpful for their circumstance. Rates of interest can be fixed or adjustable and the funds are nontaxable and do not adversely affect Medicare or Social Security benefits. The lender will not take away your home if you outlive your loan nor may you be obligated to sell your residence to repay the loan amount even if the balance is determined to exceed property value. Contact us at 562 320-0510 if you would like to explore the benefits of reverse mortgages.
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