Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to use their equity without selling their home. Deciding how you would prefer to to receive your funds: by a monthly payment amount, a line of credit, or a lump sum, you may receive a loan amount determined by your equity. Repayment is not required until after the borrower puts his home up for sale, moves (such as to a retirement community) or passes away. After your home has been sold or is no longer used as your primary residence, you (or your estate) have to pay back the lender for the cash you received from your reverse mortgage in addition to interest among other fees.
Generally, reverse mortgages require youto be at least 62 years old, have a low or zero balance in a mortgage and maintain the home as your principal living place.
Many homeowners who live on a fixed income and find themselves needing additional funds find reverse mortgages ideal for their circumstance. Interest rates may be fixed or adjustable and the money is nontaxable and does not adversely affect Social Security or Medicare benefits. Your lender is not able to take the property away if you live past the loan term nor can you be forced to sell your home to pay off your loan amount even if the loan balance grows 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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