Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to use their built-up home equity without selling their home. Choosing between a monthly payment amount, a line of credit, or a lump sum, you may take out a loan amount determined by your equity. Paying back your loan is not required until the borrower puts his home up for sale, moves (such as into a care facility) or dies. You or representative of your estate has to pay back the reverse mortgage loan, interest accrued, and other finance fees when your property is sold, or you are no longer living in it.
The requirements of a reverse mortgage loan generally are being 62 or older, maintaining the property as your primary living place, and having a low remaining mortgage balance or having paid it off.
Reverse mortgages can be advantageous for homeowners who are retired or no longer working and have a need to add to their fixed income. Rates of interest can be fixed or adjustable while the money is nontaxable and does not interfere with Medicare or Social Security benefits. The residence can never be in danger of being taken away from you by the lender or put up for sale against your will if you live longer than your loan term - even if the property value goes under the loan balance. Contact us at (650) 689-5684 to discuss your reverse mortgage options.
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