Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to benefit from their built-up equity without the necessity of selling their home. The lender gives you funds determined by the equity you've accrued in your home; you get a lump sum, a payment every month or a line of credit. The loan does not have to be paid back until the borrower sells his residence, moves away, or dies. You or your estate representative has to repay the reverse mortgage amount, interest accrued, and finance charges when your home is sold, or you no longer live in it.
Most reverse mortgages require youto be at least sixty-two years of age, have a small or zero balance in a mortgage and maintain the home as your main living place.
Many homeowners who are on a fixed income and find themselves needing additional funds find reverse mortgages helpful for their circumstance. Rates of interest may be fixed or adjustable while the money is nontaxable and does not interfere with Social Security or Medicare benefits. The house will never be in danger of being taken away from you by the lending institution or put up for sale without your consent if you outlive the loan term - even if the current property value goes below the balance of the loan. If you would like to learn more about reverse mortgages, feel free to call us at 562 320-0510.
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