Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to tap into built-up home equity without the necessity of selling their home. The lender gives you money determined by your home equity amount; you receive a one-time amount, a payment every month or a line of credit. The borrowed money doesn't have to be repaid until the borrower sells his residence, moves away, or dies. After your home sells or is no longer used as your main residence, you (or your estate) must pay back the lending institution for the funds you got from your reverse mortgage in addition to interest among other fees.
Most reverse mortgages require youto be at least sixty-two years old, have a low or zero balance in a mortgage and maintain the property as your principal residence.
Many homeowners who are on a limited income and need additional money find reverse mortgages advantageous for their situation. Social Security and Medicare benefits will not be affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed rates. Your home is never at risk of being taken away from you by the lending institution or put up for sale against your will if you live longer than the loan term - even if the current property value dips below the balance of the loan. If you would like to find out more about reverse mortgages, please call us at (818)645-7035.
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