Reverse Mortgages:the Facts

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Reverse mortgages (sometimes 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. Deciding how you prefer to be paid: by a monthly payment, a line of credit, or a lump sum, you may receive a loan amount determined by your home equity. The borrowed money does not have to be paid back until the borrower sells his residence, moves away, or passes away. You or representative of your estate is obligated to repay the reverse mortgage funds, interest accrued, and other finance fees after your property is sold, or you can no longer call it your primary residence.

Who is Able to Participate?

The requirements of a reverse mortgage loan normally are being sixty-two or older, maintaining your property as your primary living place, and holding a low balance on your mortgage or owning your home outright.

Many homeowners who are on a limited income and find themselves needing additional money find reverse mortgages advantageous for their circumstance. Interest rates can be fixed or adjustable while the funds are nontaxable and do not affect Social Security or Medicare benefits. Your residence can never be at risk of being taken away by the lender or sold without your consent if you outlive your loan term - even if the current property value goes under the balance of the loan. Call us at 949-421-1000 if you would like to explore the benefits of reverse mortgages.

First California Financial can answer questions about reverse mortgages and many others. Give us a call: 949-421-1000.