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Reverse mortgages (also called "home equity conversion loans") enable older homeowners to benefit from their built-up home equity without having to sell their home. The lending institution gives you money determined by the equity you've built-up in your home; you receive a lump sum, a payment every month or a line of credit. Repayment isn't required until the borrower sells the property, moves (such as into a care facility) or passes away. When your home has been sold or you no longer use it as your primary residence, you (or your estate) have to repay the lending institution for the cash you got from your reverse mortgage in addition to interest among other finance charges.
Are you Eligible?
Typically, reverse mortgages are available for borrowers who are at least sixty-two years old, have a low or zero balance in a mortgage and use the house as your principal living place.
Reverse mortgages can be appropriate for homeowners who are retired or no longer working and need to supplement their income. Social Security and Medicare benefits are not affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. The residence will never be at risk of being taken away by the lender or put up for sale against your will if you live longer than the loan term - even if the property value dips below the balance of the loan. If you would like to find out more about reverse mortgages, please call us at 626.339.4445.
At Lopez Financial Inc, we answer questions about reverse mortgages every day. Call us at 626.339.4445.