With a reverse mortgage loan (also called a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without selling their homes. The lender gives you funds determined by the equity you've built-up in your home; you get a one-time amount, a payment each month or a line of credit. Paying back your loan isn't required until when the homeowner puts his home up for sale, moves (such as into a retirement community) or dies. You or representative of your estate has to pay back the reverse mortgage funds, interest , and other finance charges at the time your home is sold, or you can no longer call it your primary residence.
Most reverse mortgages are available for borrowers at least sixty-two years of age, have a low or zero balance owed against your home and maintain the property as your principal residence.
Reverse mortgages are ideal for retired homeowners or those who are no longer bringing home a paycheck and have a need to supplement their fixed income. Social Security and Medicare benefits can't be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. Your lender can't take the property away if you live past the loan term nor will you be forced to sell your home to pay off the loan even if the loan balance grows to exceed property value. Call us at 818-889-7300 to explore your reverse mortgage options.
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