Is a Reverse Mortgage for You?
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Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to benefit from their built-up home equity without having to sell their home. The lender pays you funds determined by the equity you've built-up in your home; you receive a lump sum, a payment each month or a line of credit. Repayment isn't required until after the borrower sells the home, moves (such as to a retirement community) or dies. You or your estate representative must repay the reverse mortgage loan, interest , and other finance fees at the time your house is sold, or you no longer live in it.
Who is Able to Participate?
Usually, reverse mortgages are offered to homeowners at least sixty-two years of age, have a small or zero balance in a mortgage and maintain the house as your main residence.
Reverse mortgages are advantageous for retired homeowners or those who are no longer bringing home a paycheck and have a need to add to their income. Social Security and Medicare benefits can't be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. The lending institution cannot take the property away if you live past the loan term nor can you be required to sell your residence to pay off the loan even if the balance is determined to exceed current property value. Call us at 714 969-3112 if you want to explore the advantages of reverse mortgages.
Pacific Coast Funding can answer questions about reverse mortgages and many others. Give us a call at 714 969-3112.