Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to benefit from their equity without the necessity of selling their home. The lending institution pays out funds based on your home equity amount; you get a lump sum, a monthly payment or a line of credit. The borrowed money doesn't have to be paid back until the homeowner sells the residence, moves away, or passes away. After you sell your property or is no longer used as your main residence, you (or your estate) must pay back the lending institution for the money you received from your reverse mortgage as well as interest and other finance charges.
The conditions of a reverse mortgage usually are being sixty-two or older, using the property as your primary residence, and having a small balance on your mortgage or owning your home outright.
Homeowners who live on a fixed income and find themselves needing additional funds find reverse mortgages ideal for their circumstance. Rates of interest can be fixed or adjustable while the funds are nontaxable and don't interfere with Social Security or Medicare benefits. The home can never be at risk of being taken away by the lending institution or sold against your will if you live longer than your loan term - even if the current property value dips below the balance of the loan. Call us at 866-300-1550 to discuss your reverse mortgage options.
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