Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to benefit from their built-up equity without selling their home. Choosing between a monthly payment, a line of credit, or a lump sum, you may take out a loan based on your home equity. The loan does not have to be repaid until the borrower sells his home, moves out, or dies. When your home has been sold or you no longer use it as your primary residence, you (or your estate) have to pay back the lender for the money you received from your reverse mortgage as well as interest and other fees.
The conditions of a reverse mortgage normally are being sixty-two or older, using the house as your main residence, and having a low remaining mortgage balance or having paid it off.
Reverse mortgages can be helpful for retired homeowners or those who are no longer working but must add to their income. Interest rates may be fixed or adjustable and the money is nontaxable and doesn't affect Medicare or Social Security benefits. Your home will never be in danger of being taken away from you by the lending institution or sold against your will if you live longer than the loan term - even if the current property value goes below the loan balance. Contact us at 909-358-4090 if you'd like to explore the advantages of reverse mortgages.
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