Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to benefit from their built-up home equity without the necessity of selling their home. The lending institution gives you money based on your home equity amount; you receive a one-time amount, a monthly payment or a line of credit. Repayment is not necessary until the borrower puts his home up for sale, moves (such as to a retirement community) or dies. You or an estate representative is obligated to repay the reverse mortgage loan, interest accrued, and finance charges when your house is sold, or you no longer live in it.
The conditions of a reverse mortgage loan normally include being sixty-two or older, using the property as your main living place, and holding a low remaining mortgage balance or owning your home outright.
Homeowners who are on a limited income and need additional funds find reverse mortgages advantageous for their circumstance. Interest rates can be fixed or adjustable while the money is nontaxable and doesn't affect Medicare or Social Security benefits. The lending institution will not take away your property if you outlive your loan nor can you be made to sell your home to pay off your loan even if the loan balance is determined to exceed current property value. Contact us at 760-547-2080 if you would like to explore the benefits of reverse mortgages.