With a reverse mortgage (also referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. Deciding how you'd prefer to be paid: by a monthly amount, a line of credit, or a lump sum, you can get a loan based on your equity. Repayment isn't required until after the homeowner puts his home up for sale, moves (such as to a care facility) or passes away. When your home sells or you no longer use it as your main residence, you (or your estate) have to repay the lender for the funds you got from your reverse mortgage plus interest and other finance charges.
The requirements of a reverse mortgage normally are being sixty-two or older, using the property as your main living place, and holding a low balance on your mortgage or owning your home outright.
Many homeowners who are on a limited income and need additional funds find reverse mortgages ideal for their circumstance. Interest rates may be fixed or adjustable and the funds are nontaxable and don't interfere with Social Security or Medicare benefits. Your residence can never be at risk of being taken away by the lender or put up for sale without your consent if you outlive your loan term - even if the current property value goes under the loan balance. Call us at (650) 689-5684 if you would like to explore the benefits of reverse mortgages.
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