In a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), borrowers 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 can take out a loan based on your equity. The borrowed money doesn't have to be repaid until the borrower sells his home, moves out, or dies. After your home has been sold or you no longer use it as your main residence, you (or your estate) are required to pay back the lender for the cash you got from your reverse mortgage in addition to interest and other finance charges.
The requirements of a reverse mortgage loan typically include being 62 or older, maintaining the property as your primary residence, and holding a low remaining mortgage balance or having paid it off.
Homeowners who are on a fixed income and find themselves needing additional funds find reverse mortgages ideal for their situation. Rates of interest may be fixed or adjustable and the funds are nontaxable and don't interfere with Social Security or Medicare benefits. The lender is not able to take the property away if you outlive your loan nor can you be obligated to sell your home to pay off the loan amount even if the balance grows to exceed current property value. Call us at 916-731-4405 to look into your reverse mortgage options.
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