In a reverse mortgage loan (also called a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without selling their homes. The lender gives you money based on your home equity amount; you get a one-time amount, a payment every month or a line of credit. The loan doesn't have to be repaid until the borrower sells his residence, moves away, or dies. At the time your home has been sold or is no longer used as your primary residence, you (or your estate) are required to pay back the lender for the money you got from the reverse mortgage as well as interest and other finance charges.
The conditions of a reverse mortgage loan normally are being sixty-two or older, maintaining your home as your primary residence, and having a small remaining mortgage balance or owning your home outright.
Homeowners who live on a limited income and have a need for additional funds find reverse mortgages advantageous for their situation. Interest rates may be fixed or adjustable while the money is nontaxable and does not affect Social Security or Medicare benefits. The lender will not take away your property if you outlive your loan nor may you be obligated to sell your home to pay off the loan amount even if the loan balance grows to exceed current property value. Call us at (760) 632-7701 if you'd like to explore the benefits of reverse mortgages.
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