With a reverse mortgage loan (also referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without having to sell their homes. Choosing between a monthly payment amount, a line of credit, or a lump sum, you may get a loan amount determined by your equity. Repayment isn't required until when the homeowner sells the property, moves (such as to a retirement community) or passes away. You or representative of your estate has to repay the reverse mortgage funds, interest , and other finance charges after your home is sold, or you are no longer living in it.
Typically, reverse mortgages are appropriate for homeowners who are at least sixty-two years of age, have a small or zero balance in a mortgage and use the home as your main residence.
Homeowners who are on a limited income and find themselves needing additional money find reverse mortgages advantageous for their situation. Social Security and Medicare benefits won't be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed rates. Your lending institution will not take away your home if you outlive your loan nor may you be forced to sell your residence to repay your loan even when the balance is determined to exceed current property value. Call us at 562 320-0510 if you would like to explore the advantages of reverse mortgages.
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