Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to use their built-up equity without having to sell their home. The lending institution gives you money based on the equity you've accrued in your home; you receive a lump sum, a payment each month or a line of credit. The borrowed money does not have to be repaid until the homeowner sells his residence, moves away, or dies. At the time your house has been sold or you no longer use it as your main residence, you (or your estate) must pay back the lending institution for the cash you got from the reverse mortgage as well as interest and other finance charges.
The requirements of a reverse mortgage typically are being sixty-two or older, using the house as your main residence, and holding a low remaining mortgage balance or having paid it off.
Homeowners who are on a fixed income and have a need for additional money find reverse mortgages advantageous for their situation. Interest rates can be fixed or adjustable and the money is nontaxable and does not affect Medicare or Social Security benefits. Your residence can never be at risk of being taken away by the lender or put up for sale against your will if you outlive your loan term - even if the current property value goes below the balance of the loan. Call us at 866-300-1550 if you'd like to explore the benefits of reverse mortgages.
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