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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 having to sell their homes. Deciding how you prefer to be paid: by a monthly payment, a line of credit, or a lump sum, you can get a loan amount determined by your home equity. The loan doesn't have to be repaid until the borrower sells his home, moves away, or dies. You or representative of your estate must pay back the reverse mortgage amount, interest , and finance charges at the time your home is sold, or you can no longer use it as your primary residence.
Who can Participate?
Usually, reverse mortgages require you to be at least sixty-two years of age, have a low or zero balance owed against your home and use the property as your principal residence.
Reverse mortgages are appropriate for homeowners who are retired or no longer working and must supplement their income. Social Security and Medicare benefits won't be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. Your lending institution will not take the property away if you outlive your loan nor may you be required to sell your home to pay off your loan amount even if the loan balance is determined to exceed current property value. Contact us at 310-534-6200 to explore your reverse mortgage options. (This material is not from HUD or FHA and has not been approved by HUD or a government agency. Homeowner will continue to have the responsibility to pay the property taxes, fire insurance and keep the home maintained).