Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to tap into equity without the necessity of selling their home. The lending institution gives you money determined by the equity you've accrued in your home; you get a one-time amount, a payment each month or a line of credit. The borrowed money does not have to be paid back until the borrower sells the residence, moves away, or passes away. When you sell your home or is no longer used as your main residence, you (or your estate) must pay back the lending institution for the cash you received from your reverse mortgage plus interest among other finance charges.
The requirements of a reverse mortgage loan usually include being sixty-two or older, using the property as your main living place, and having a small remaining mortgage balance or owning your home outright.
Reverse mortgages are helpful for retired homeowners or those who are no longer working but must supplement their fixed income. Social Security and Medicare benefits can not be affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed interest rates. Your lender isn't able to take the property away if you outlive your loan nor will you be made to sell your home to pay off your loan amount even if the balance grows to exceed property value. Contact us at (760) 632-7701 to look into your reverse mortgage options.
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