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 living expenses without selling their homes. Deciding how you would like to be paid: by a monthly payment amount, a line of credit, or a one-time payment, you can take out a loan based on your equity. The loan doesn't have to be repaid until the borrower sells the residence, moves away, or passes away. You or representative of your estate has to repay the reverse mortgage funds, interest accrued, and finance fees after your property is sold, or you can no longer call it your primary residence.
The conditions of a reverse mortgage usually are being sixty-two or older, using the home as your primary living place, and holding a low remaining mortgage balance or having paid it off.
Homeowners who live on a limited income and need additional money find reverse mortgages advantageous for their situation. Social Security and Medicare benefits can't be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. Your lender will not take away your house if you outlive your loan nor can you be required to sell your residence to pay off the loan amount even if the loan balance grows to exceed current property value. Call us at 562 320-0510 if you want to explore the benefits of reverse mortgages.
Do you have a question regarding a mortgage program?