Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to use their built-up home equity without the necessity of selling their home. Deciding how you prefer to be paid: by a monthly payment amount, a line of credit, or a one-time payment, you can receive a loan based on your equity. The borrowed money does not have to be repaid until the borrower sells the residence, moves out, or passes away. When your house sells or you no longer use it as your main residence, you (or your estate) have to repay the lender for the funds you received from your reverse mortgage plus interest and other finance charges.
Generally, reverse mortgages require youto be at least sixty-two years of age, have a small or zero balance owed against your home and maintain the house as your main residence.
Many homeowners who are on a limited income and have a need for additional money find reverse mortgages advantageous for their circumstance. Interest rates may be fixed or adjustable while the money is nontaxable and doesn't interfere with Social Security or Medicare benefits. Your lender can't take away your residence if you live past the loan term nor can you be required to sell your residence to repay the loan even when the loan balance grows to exceed current property value. If you'd like to find out more about reverse mortgages, please call us at 3149139678.