In a reverse mortgage (also called a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without having to sell their homes. Choosing between a monthly amount, a line of credit, or a lump sum, you may receive a loan based on your equity. The loan does not have to be repaid until the homeowner sells his residence, moves away, or dies. You or an estate representative must repay the reverse mortgage loan, interest , and other finance charges when your home is sold, or you are no longer living in it.
Most reverse mortgages are offered to borrowers at least sixty-two years of age, have a low or zero balance owed against the home and maintain the home as your main residence.
Homeowners who live on a limited income and find themselves needing additional funds find reverse mortgages advantageous for their situation. Interest rates can be fixed or adjustable while the money is nontaxable and doesn't affect Medicare or Social Security benefits. The lending institution cannot take the property away if you outlive your loan nor can you be obligated to sell your home to repay your loan even when the loan balance is determined to exceed property value. Call us at 866-300-1550 to explore your reverse mortgage options.
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