In a reverse mortgage loan (also referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without having to sell their homes. Deciding how you'd like to to receive your money: by a monthly amount, a line of credit, or a one-time payment, you may receive a loan amount determined by your home equity. The loan doesn't have to be repaid until the homeowner sells the residence, moves out, or passes away. You or an estate representative is obligated to pay back the reverse mortgage amount, interest accrued, and other finance fees after your house is sold, or you can no longer call it your primary residence.
The requirements of a reverse mortgage loan normally include being sixty-two or older, maintaining your house as your primary living place, and holding a small balance on your mortgage or owning your home outright.
Many homeowners who live on a fixed income and find themselves needing additional money find reverse mortgages advantageous for their circumstance. Rates of interest can be fixed or adjustable and the funds are nontaxable and do not affect Social Security or Medicare benefits. The lender is not able to take away your residence if you outlive your loan nor can you be obligated to sell your residence to pay off your loan even when the balance grows to exceed current property value. Call us at 818-889-7300 if you'd like to explore the advantages of reverse mortgages.
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