Reverse Mortgages:the Facts
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Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to benefit from their equity without the necessity of selling their home. The lending institution gives you funds determined by the equity you've built-up in your home; you get a one-time amount, a payment each month or a line of credit. Repayment is not necessary until after the borrower puts his home up for sale, moves (such as to a care facility) or dies. You or an estate representative must repay the reverse mortgage loan, interest accrued, and other finance fees when your house is sold, or you no longer live in it.
Who can Participate?
Generally, reverse mortgages require you be at least 62 years old, have a low or zero balance in a mortgage and use the house as your principal residence.
Reverse mortgages can be ideal for retired homeowners or those who are no longer bringing home a paycheck but must supplement their limited income. Interest rates can be fixed or adjustable while the funds are nontaxable and don't affect Social Security or Medicare benefits. The residence is never in danger of being taken away from you by the lender or sold without your consent if you live past your loan term - even if the current property value dips under the loan balance. Contact us at (909) 467-1090 if you'd like to explore the advantages of reverse mortgages.