Reverse Mortgages:the Facts
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With a reverse mortgage loan (also called a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without having to sell their homes. Choosing between a monthly payment, a line of credit, or a lump sum, you can receive a loan amount determined by your home equity. The loan doesn't have to be repaid until the borrower sells his residence, moves away, or dies. At the time you sell your property or you no longer use it as your main residence, you (or your estate) are required to repay the lending institution for the cash you received from the reverse mortgage in addition to interest and other finance charges.
Are you Eligible?
Usually, reverse mortgages are appropriate for homeowners at least sixty-two years old, have a low or zero balance in a mortgage and maintain the home as your main living place.
Reverse mortgages are ideal for homeowners who are retired or no longer working and must supplement their income. Social Security and Medicare benefits can't be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed interest rates. Your lending institution will not take the property away if you live past the loan term nor will you be forced to sell your residence to pay off the loan even if the balance grows to exceed property value. Call us at (909) 467-1090 to discuss your reverse mortgage options.