Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to use their built-up equity without having to sell their home. The lending institution gives you funds determined by your home equity amount; you get a one-time amount, a monthly payment or a line of credit. The borrowed money doesn't have to be paid back until the borrower sells his residence, moves away, or dies. At the time you sell your home or is no longer used as your primary residence, you (or your estate) must pay back the lender for the funds you obtained from the reverse mortgage as well as interest among other fees.
The requirements of a reverse mortgage normally are being sixty-two or older, maintaining the property as your primary residence, and holding a low remaining mortgage balance or owning your home outright.
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 may be fixed or adjustable while the money is nontaxable and doesn't affect Medicare or Social Security benefits. Your lender will not take the property away if you outlive your loan nor can you be made to sell your residence to repay the loan amount even if the balance grows to exceed property value. Contact us at 562 320-0510 if you'd like to explore the benefits of reverse mortgages.
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