Reverse mortgages (also called "home equity conversion loans") enable older homeowners to benefit from their home equity without selling their home. Choosing between a monthly payment, a line of credit, or a lump sum, you can receive a loan based on your equity. The loan doesn't have to be repaid until the homeowner sells the residence, moves out, or dies. At the time you sell your property or you no longer use it as your main residence, you (or your estate) are obligated to pay back the lender for the funds you obtained from the reverse mortgage in addition to interest among other finance charges.
The requirements of a reverse mortgage loan usually are being sixty-two or older, maintaining the home as your primary residence, and holding a small remaining mortgage balance or owning your home outright.
Many homeowners who are on a fixed income and have a need for additional funds find reverse mortgages advantageous for their circumstance. Interest rates can be fixed or adjustable while the funds are nontaxable and do not affect Medicare or Social Security benefits. The home is never in danger of being taken away from you by the lender or put up for sale against your will if you live past the loan term - even if the property value goes under the loan balance. Call us at (818)645-7035 to discuss your reverse mortgage options.
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