With a reverse mortgage loan (also referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without having to sell their homes. The lender pays you funds determined by the equity you've built-up in your home; you get a lump sum, a monthly payment or a line of credit. The borrowed money doesn't have to be paid back until the borrower sells the residence, moves away, or passes away. At the time your house sells or you no longer use it as your primary residence, you (or your estate) are required to repay the lending institution for the cash you got from your reverse mortgage in addition to interest among other fees.
The conditions of a reverse mortgage loan typically are being 62 or older, using the house as your primary living place, and having a low remaining mortgage balance or having paid it off.
Homeowners who live on a limited income and need additional funds find reverse mortgages ideal for their situation. Social Security and Medicare benefits can not be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed interest rates. The lender will not take away your house if you outlive your loan nor can you be made to sell your home to pay off the loan amount even if the balance is determined to exceed current property value. Contact us at 916-731-4405 to discuss your reverse mortgage options.
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