In a reverse mortgage loan (sometimes called a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. Deciding how you would like to be paid: by a monthly amount, a line of credit, or a lump sum, you can take out a loan amount determined by your home equity. Paying back your loan is not necessary until after the borrower sells the property, moves (such as into a retirement community) or passes away. After you sell your property or is no longer used as your primary residence, you (or your estate) must pay back the lending institution for the cash you received from your reverse mortgage plus interest and other finance charges.
The requirements of a reverse mortgage normally include being sixty-two or older, using the home as your primary residence, and holding a low remaining mortgage balance or having paid it off.
Reverse mortgages can be appropriate for homeowners who are retired or no longer bringing home a paycheck but have a need to add to their income. Social Security and Medicare benefits will not be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed interest rates. Your lender is not able to take away your house if you live past the loan term nor may you be forced to sell your home to pay off your loan amount even if the loan balance is determined to exceed current property value. Contact us at 866-300-1550 if you want to explore the advantages of reverse mortgages.
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