With a reverse mortgage loan (sometimes called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without having to sell their homes. The lending institution gives you funds based on your home equity amount; you receive a one-time amount, a payment every month or a line of credit. Repayment is not necessary until when the homeowner sells the home, moves (such as to a care facility) or passes away. You or representative of your estate must repay the reverse mortgage funds, interest accrued, and finance fees at the time your property is sold, or you no longer live in it.
Usually, reverse mortgages are offered to borrowers who are at least 62 years old, have a small or zero balance in a mortgage and use the home as your principal living place.
Reverse mortgages are ideal for retired homeowners or those who are no longer bringing home a paycheck and need to supplement their limited income. Interest rates may be fixed or adjustable and the money is nontaxable and does not interfere with Social Security or Medicare benefits. The lender will not take away your house if you outlive your loan nor may you be required to sell your residence to repay your loan amount even if the balance grows to exceed property value. Contact us at 3149139678 to discuss your reverse mortgage options.