Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to benefit from their built-up equity without having to sell their home. The lending institution pays out funds determined by the equity you've accrued in your home; you get a one-time amount, a monthly payment or a line of credit. Paying back your loan is not necessary until after the borrower puts his home up for sale, moves (such as to a care facility) or dies. You or representative of your estate must pay back the reverse mortgage loan, interest , and finance fees after your property is sold, or you no longer live in it.
The requirements of a reverse mortgage loan generally are being sixty-two or older, maintaining your property as your main living place, and holding a low balance on your mortgage or having paid it off.
Reverse mortgages can be advantageous for homeowners who are retired or no longer working but must add to their fixed income. Social Security and Medicare benefits aren't affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed rates. Your lender can't take the property away if you live past the loan term nor may you be forced to sell your home to repay your loan even when the balance is determined to exceed property value. Call us at 949-421-1000 if you want to explore the advantages of reverse mortgages.