With a reverse mortgage loan (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without having to sell their homes. Choosing between a monthly payment amount, a line of credit, or a one-time payment, you can take out a loan based on your equity. Paying back your loan is not necessary until when the borrower sells the property, moves (such as into a retirement community) or passes away. You or representative of your estate has to repay the reverse mortgage funds, interest , and other finance charges after your house is sold, or you no longer live in it.
Typically, reverse mortgages are offered to borrowers who are at least sixty-two years old, have a small or zero balance owed against your home and maintain the home as your main living place.
Reverse mortgages can be appropriate for retired homeowners or those who are no longer working and have a need to supplement their fixed income. Social Security and Medicare benefits aren't affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed interest rates. Your residence is never at risk of being taken away from you by the lending institution or put up for sale without your consent if you outlive your loan term - even if the property value goes under the loan balance. If you would like to learn more about reverse mortgages, feel free to contact us at (650) 689-5684.
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