Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to use their built-up home equity without the necessity of selling their home. The lending institution gives you money based on your home equity amount; you receive a lump sum, a monthly payment or a line of credit. Repayment isn't required until the time the borrower puts his home up for sale, moves (such as to a retirement community) or dies. You or an estate representative must repay the reverse mortgage amount, interest , and finance fees when your property is sold, or you no longer live in it.
The requirements of a reverse mortgage often include being 62 or older, maintaining your property as your main living place, and having a small remaining mortgage balance or having paid it off.
Homeowners who live on a fixed income and need additional funds find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits can't be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed interest rates. The lending institution cannot take the property away if you live past the loan term nor can you be forced to sell your residence to repay your loan amount even if the balance grows to exceed current property value. Call us at 562 320-0510 if you would like to explore the benefits of reverse mortgages.
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