Reverse mortgages (also called "home equity conversion loans") enable older homeowners to benefit from their equity without having to sell their home. The lending institution gives you money determined by the equity you've accrued in your home; you receive a one-time amount, a payment each month or a line of credit. Paying back your loan isn't required until the borrower puts his home up for sale, moves (such as to a care facility) or passes away. You or an estate representative has to repay the reverse mortgage amount, interest accrued, and finance charges when your house is sold, or you are no longer living in it.
The requirements of a reverse mortgage loan generally include being sixty-two or older, using the house as your primary living place, and having a small balance on your mortgage or owning your home outright.
Homeowners who are on a limited income and find themselves needing additional funds find reverse mortgages ideal for their circumstance. Social Security and Medicare benefits will not be affected; and the money is nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. Your lending institution cannot take the property away if you outlive your loan nor may you be obligated to sell your residence to pay off your loan even if the loan balance grows to exceed property value. Call us at 3149139678 if you would like to explore the benefits of reverse mortgages.