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In a reverse mortgage loan (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without selling their homes. Choosing between a monthly payment amount, a line of credit, or a one-time payment, you may take out a loan amount determined by your home equity. The loan does not have to be paid back until the borrower sells his home, moves away, or dies. At the time you sell your home or is no longer used as your main residence, you (or your estate) have to repay the lending institution for the money you received from your reverse mortgage as well as interest and other fees.
Who is Eligible?
Usually, reverse mortgages are available for borrowers who are at least sixty-two years of age, have a low or zero balance in a mortgage and maintain the property as your principal residence.
Homeowners who are on a limited income and have a need for additional funds find reverse mortgages advantageous for their situation. Social Security and Medicare benefits are not affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed interest rates. Your lender is not able to take away your home if you live past the loan term nor may you be made to sell your residence to repay the loan even if the balance is determined to exceed current property value. Contact us at (909) 467-1090 if you want to explore the benefits of reverse mortgages.