Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to benefit from their built-up home equity without selling their home. The lending institution gives you funds based on your home equity amount; you receive a one-time amount, a monthly payment or a line of credit. Paying back your loan is not required until when the homeowner puts his home up for sale, moves (such as to a care facility) or passes away. You or representative of your estate must pay back the reverse mortgage amount, interest , and other finance fees at the time your property is sold, or you are no longer living in it.
The requirements of a reverse mortgage typically are being sixty-two or older, maintaining the property as your main residence, and holding a small balance on your mortgage or having paid it off.
Reverse mortgages are appropriate for retired homeowners or those who are no longer bringing home a paycheck and have a need to supplement their fixed income. Social Security and Medicare benefits are not affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. The home can never be in danger of being taken away from you by the lending institution or put up for sale without your consent if you live past the loan term - even if the current property value dips under the loan balance. Call us at 866-300-1550 if you'd like to explore the benefits of reverse mortgages.
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