In a reverse mortgage (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. The lending institution gives you funds determined by your home equity amount; you receive a lump sum, a monthly payment or a line of credit. Repayment isn't required until when the homeowner sells the property, moves (such as into a care facility) or dies. At the time your home has been sold or is no longer used as your primary residence, you (or your estate) must repay the lending institution for the money you obtained from your reverse mortgage plus interest and other fees.
The conditions of a reverse mortgage generally are being sixty-two or older, using the house as your primary residence, and holding a small remaining mortgage balance or owning your home outright.
Homeowners who are on a fixed income and need additional money find reverse mortgages ideal for their situation. Social Security and Medicare benefits won't be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. Your lending institution will not take the property away if you live past the loan term nor will you be obligated to sell your residence to pay off the loan even if the loan balance grows to exceed property value. Call us at (760) 632-7701 if you'd like to explore the benefits of reverse mortgages.
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