In a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without having to sell their homes. Choosing between a monthly payment, a line of credit, or a one-time payment, you can receive a loan amount determined by your home equity. The loan doesn't have to be repaid until the homeowner sells the home, moves out, or dies. You or representative of your estate is required to pay back the reverse mortgage loan, interest , and finance charges after your home is sold, or you are no longer living in it.
The requirements of a reverse mortgage generally are being sixty-two or older, maintaining your home as your main residence, and having a low remaining mortgage balance or owning your home outright.
Reverse mortgages can be ideal for retired homeowners or those who are no longer working but have a need to supplement their income. Interest rates can be fixed or adjustable and the funds are nontaxable and don't interfere with Medicare or Social Security benefits. Your home will never be in danger of being taken away from you by the lender or put up for sale without your consent if you live longer than the loan term - even if the current property value goes under the loan balance. If you would like to find out more about reverse mortgages, feel free to contact us at 866-300-1550.
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