Reverse Mortgages:the Facts
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In a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. Deciding how you'd like to to receive your funds: by a monthly payment amount, a line of credit, or a lump sum, you can take out a loan based on your home equity. The loan doesn't have to be repaid until the homeowner sells his residence, moves away, or dies. After your house sells or you no longer use it as your main residence, you (or your estate) have to pay back the lending institution for the cash you got from your reverse mortgage plus interest and other fees.
Who is Eligible?
Typically, reverse mortgages are offered to homeowners who are at least sixty-two years old, have a low or zero balance owed against your home and use the house as your main living place.
Reverse mortgages can be ideal for retired homeowners or those who are no longer bringing home a paycheck but need to add to their income. Social Security and Medicare benefits won't be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed rates. The home is never at risk of being taken away from you by the lending institution or sold without your consent if you outlive your loan term - even if the property value goes below the balance of the loan. Contact us at (707) 964-0708 if you want to explore the advantages of reverse mortgages.
First Equity can answer questions about reverse mortgages and many others. Give us a call at (707) 964-0708.