In a reverse mortgage (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. The lender pays you funds determined by your home equity amount; you get a one-time amount, a payment each month or a line of credit. The loan doesn't have to be paid back until the homeowner sells his residence, moves out, or dies. You or your estate representative is obligated to repay the reverse mortgage amount, interest , and other finance charges when your home is sold, or you can no longer call it your primary residence.
The requirements of a reverse mortgage normally include being sixty-two or older, using the house as your main residence, and holding a small remaining mortgage balance or owning your home outright.
Reverse mortgages are ideal for homeowners who are retired or no longer bringing home a paycheck and have a need to supplement their limited income. Interest rates may be fixed or adjustable and the funds are nontaxable and don't affect Medicare or Social Security benefits. Your lender will not take away your residence if you outlive your loan nor will you be made to sell your residence to pay off the loan amount even if the balance grows to exceed current property value. Call us at 3149139678 if you'd like to explore the benefits of reverse mortgages.