Reverse mortgages (also called "home equity conversion loans") give older homeowners the ability to use their built-up home equity without the necessity of selling their home. Deciding how you'd like to to receive your money: by a monthly amount, a line of credit, or a lump sum, you may receive a loan based on your equity. Paying back your loan isn't necessary until after the borrower sells the property, moves (such as to a care facility) or passes away. You or an estate representative must pay back the reverse mortgage funds, interest , and finance fees after your property is sold, or you can no longer call it your primary residence.
Usually, reverse mortgages require you be at least 62 years old, have a small or zero balance in a mortgage and maintain the home as your main residence.
Many homeowners who are on a fixed income and find themselves needing additional money find reverse mortgages helpful for their situation. Rates of interest may be fixed or adjustable and the money is nontaxable and doesn't adversely affect Social Security or Medicare benefits. Your lender will not take away your home if you outlive your loan nor can you be made to sell your residence to pay off the loan amount even when the balance is determined to exceed current property value. Call us at (650) 689-5684 if you want to explore the advantages of reverse mortgages.
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