In a reverse mortgage (sometimes called a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without having to sell their homes. Deciding how you'd prefer to be paid: by a monthly amount, a line of credit, or a one-time payment, you may take out a loan amount determined by your home equity. The borrowed money does not have to be paid back until the borrower sells the home, moves away, or dies. At the time your house sells or is no longer used as your primary residence, you (or your estate) must pay back the lending institution for the funds you got from the reverse mortgage in addition to interest among other finance charges.
Typically, reverse mortgages require youto be at least 62 years of age, have a low or zero balance owed against the home and use the house as your principal living place.
Homeowners who are on a limited income and have a need for additional money find reverse mortgages ideal for their circumstance. Interest rates can be fixed or adjustable while the money is nontaxable and does not interfere with Medicare or Social Security benefits. Your lender will not take the property away if you live past the loan term nor may you be obligated to sell your residence to pay off the loan even when the balance grows to exceed property value. Contact us at (760) 632-7701 if you'd like to explore the benefits of reverse mortgages.
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