With a reverse mortgage (also referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. Choosing between a monthly amount, a line of credit, or a lump sum, you may receive a loan amount determined by your equity. The loan doesn't have to be repaid until the homeowner sells the residence, moves out, or passes away. At the time you sell your property or you no longer use it as your main residence, you (or your estate) are required to repay the lender for the funds you received from the reverse mortgage plus interest among other fees.
The conditions of a reverse mortgage loan usually are being sixty-two or older, using the house as your main living place, and holding a low balance on your mortgage or having paid it off.
Reverse mortgages can be helpful for retired homeowners or those who are no longer working but have a need to supplement their limited income. Interest rates can be fixed or adjustable while the funds are nontaxable and don't adversely affect Social Security or Medicare benefits. Your home will never be in danger of being taken away from you by the lending institution or put up for sale without your consent if you live past your loan term - even if the current property value dips under the balance of the loan. Call us at (760) 632-7701 if you would like to explore the advantages of reverse mortgages.
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