Reverse Mortgages:the Facts

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With a reverse mortgage loan (also referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without having to sell their homes. Deciding how you'd prefer to be paid: by a monthly payment, a line of credit, or a one-time payment, you can get a loan based on your equity. The borrowed money does not have to be repaid until the borrower sells his home, moves away, or dies. When you sell your property or is no longer used as your main residence, you (or your estate) have to pay back the lender for the money you got from the reverse mortgage as well as interest among other fees.

Who can Participate?

The requirements of a reverse mortgage loan usually include being 62 or older, using the home as your main residence, and holding a small balance on your mortgage or owning your home outright.

Homeowners who live on a limited income and find themselves needing additional money find reverse mortgages helpful for their circumstance. Rates of interest can be fixed or adjustable while the money is nontaxable and doesn't interfere with Social Security or Medicare benefits. The lender can't take away your house if you outlive your loan nor may 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 949-421-1000 if you'd like to explore the advantages of reverse mortgages.

First California Financial can answer questions about reverse mortgages and many others. Call us at 949-421-1000.