Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to use their built-up equity without having to sell their home. Deciding how you would prefer to to receive your money: by a monthly amount, a line of credit, or a one-time payment, you can receive a loan amount determined by your equity. Paying back your loan is not required until when the borrower puts his home up for sale, moves (such as to a care facility) or dies. You or your estate representative is required to repay the reverse mortgage loan, interest accrued, and finance fees after your property is sold, or you are no longer living in it.
Typically, reverse mortgages are appropriate for borrowers at least 62 years old, have a low or zero balance owed against your home and maintain the home as your main residence.
Reverse mortgages are advantageous for homeowners who are retired or no longer bringing home a paycheck and have a need to add to their limited income. Social Security and Medicare benefits can't be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. The residence is never in danger of being taken away from you by the lender or put up for sale without your consent if you live longer than your loan term - even if the current property value dips below the loan balance. If you would like to learn more about reverse mortgages, feel free to call us at 866-300-1550.
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