Reverse Mortgages:the Facts

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Reverse mortgages (also called "home equity conversion loans") enable older homeowners to use their equity without the necessity of selling their home. Choosing between a monthly payment amount, a line of credit, or a lump sum, you can get a loan based on your home equity. The borrowed money does not have to be repaid until the homeowner sells his home, moves out, or dies. After you sell your property or you no longer use it as your main residence, you (or your estate) are required to repay the lending institution for the cash you received from the reverse mortgage in addition to interest and other fees.

Are you Eligible?

The conditions of a reverse mortgage loan typically include being sixty-two or older, maintaining the house as your primary residence, and holding a low balance on your mortgage or owning your home outright.

Many homeowners who are on a limited income and have a need for additional money find reverse mortgages ideal for their circumstance. Rates of interest may be fixed or adjustable while the funds are nontaxable and don't adversely affect Medicare or Social Security benefits. Your lending institution will not take the property away if you live past the loan term nor can you be obligated to sell your home to repay your loan amount even if the loan balance is determined to exceed current property value. Contact us at 3149139678 to discuss your reverse mortgage options.

At Bob Rutledge Mortgage, we answer questions about reverse mortgages every day. Give us a call at 3149139678.