With a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without having to sell their homes. Choosing between a monthly payment amount, a line of credit, or a one-time payment, you may get a loan based on your equity. Paying back your loan is not required until the time the homeowner sells the home, moves (such as into a retirement community) or passes away. After you sell your property or you no longer use it as your primary residence, you (or your estate) are required to pay back the lender for the cash you obtained from your reverse mortgage as well as interest among other fees.
The requirements of a reverse mortgage normally are being 62 or older, using the property as your main living place, and holding a low remaining mortgage balance or owning your home outright.
Reverse mortgages are advantageous for retired homeowners or those who are no longer working but have a need to add to their income. Rates of interest may be fixed or adjustable while the money is nontaxable and does not interfere with Social Security or Medicare benefits. Your lender can't take the property away if you live past the loan term nor will you be required to sell your home to repay your loan even if the loan balance grows to exceed property value. Call us at 562 320-0510 if you'd like to explore the benefits of reverse mortgages.
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