Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to tap into built-up equity without the necessity of selling their home. The lending institution gives you money based on your home equity amount; you get a one-time amount, a payment each month or a line of credit. The loan does not have to be repaid until the borrower sells his home, moves out, or dies. When your house has been sold or you no longer use it as your primary residence, you (or your estate) must repay the lender for the money you received from the reverse mortgage plus interest among other finance charges.
Most reverse mortgages require youto be at least 62 years of age, have a low or zero balance in a mortgage and maintain the house as your principal residence.
Reverse mortgages can be advantageous for homeowners who are retired or no longer bringing home a paycheck but must add to their income. Social Security and Medicare benefits can't be affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed interest rates. The lender isn't able to take the property away if you outlive your loan nor can you be forced to sell your home to repay your loan even if the loan balance is determined to exceed property value. Call us at (818)645-7035 if you would like to explore the advantages of reverse mortgages.
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