Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to tap into built-up home equity without the necessity of selling their home. Choosing between a monthly payment, a line of credit, or a one-time payment, you may get a loan based on your home equity. The borrowed money does not have to be repaid until the borrower sells his residence, moves away, or dies. When your home sells or is no longer used as your main residence, you (or your estate) have to repay the lending institution for the money you received from your reverse mortgage in addition to interest among other finance charges.
The conditions of a reverse mortgage loan usually are being sixty-two or older, maintaining your property as your main living place, and having a small balance on your mortgage or having paid it off.
Reverse mortgages are great for retired homeowners or those who are no longer bringing home a paycheck but have a need to add to their income. Interest rates can be fixed or adjustable and the money is nontaxable and doesn't interfere with Social Security or Medicare benefits. Your home will never be in danger of being taken away by the lender or sold without your consent if you live past your loan term - even if the property value goes below the loan balance. Call us at (949) 770-6067 to look into your reverse mortgage options.