With 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. The lending institution gives you funds based on your home equity amount; you get a lump sum, a payment every month or a line of credit. Paying back your loan isn't required until after the homeowner puts his home up for sale, moves (such as to a care facility) or passes away. You or your estate representative must pay back the reverse mortgage loan, interest accrued, and other finance fees when your property is sold, or you no longer live in it.
The requirements of a reverse mortgage loan often include being 62 or older, using the house as your primary residence, and having a low balance on your mortgage or owning your home outright.
Reverse mortgages are helpful for homeowners who are retired or no longer bringing home a paycheck and must add to their income. Social Security and Medicare benefits aren't affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed rates. Your lending institution will not take away your property if you live past the loan term nor may you be forced to sell your residence to repay your loan amount even if the balance is determined to exceed current property value. Call us at (925) 560-7644 if you want to explore the benefits of reverse mortgages.
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