With a reverse mortgage loan (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. The lending institution pays out money based on your home equity amount; you get a lump sum, a monthly payment or a line of credit. Paying back your loan is not necessary until the time the homeowner sells the home, moves (such as into a retirement community) or passes away. You or an estate representative is obligated to pay back the reverse mortgage amount, interest , and other finance fees when your house is sold, or you can no longer use it as your primary residence.
Usually, reverse mortgages require you be at least sixty-two years of age, have a small or zero balance in a mortgage and maintain the house as your principal residence.
Reverse mortgages are advantageous for retired homeowners or those who are no longer working but must supplement their limited income. Social Security and Medicare benefits can not be affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed rates. Your lender will not take away your house if you outlive your loan nor may you be obligated to sell your residence to repay the loan even when the loan balance grows to exceed current property value. Contact us at 3149139678 if you want to explore the benefits of reverse mortgages.