Reverse mortgages (also called "home equity conversion loans") give older homeowners the ability to tap into built-up home equity without selling their home. The lending institution pays out money determined by the equity you've accrued in your home; you get a lump sum, a monthly payment or a line of credit. The loan doesn't have to be repaid until the borrower sells his home, moves away, or passes away. You or representative of your estate has to repay the reverse mortgage amount, interest , and other finance fees when your home is sold, or you are no longer living in it.
The conditions of a reverse mortgage often include being sixty-two or older, maintaining the house as your main living place, and holding a small remaining mortgage balance or having paid it off.
Homeowners who live on a limited income and need additional money find reverse mortgages advantageous for their situation. Rates of interest may be fixed or adjustable and the money is nontaxable and does not affect Social Security or Medicare benefits. The residence will never be in danger of being taken away by the lending institution or sold without your consent if you outlive the loan term - even if the current property value goes under the balance of the loan. Contact us at 310-975-9739 to explore your reverse mortgage options.
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