Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to use their built-up equity without the necessity of selling their home. The lender pays out money based on your home equity amount; you get a lump sum, a monthly payment or a line of credit. The borrowed money does not have to be repaid until the homeowner sells the home, moves out, or dies. You or an estate representative must repay the reverse mortgage loan, interest accrued, and other finance fees after your house is sold, or you no longer live in it.
Typically, reverse mortgages require youto be at least 62 years old, have a small or zero balance owed against your home and maintain the property as your main living place.
Homeowners who live on a limited income and find themselves needing additional funds find reverse mortgages helpful for their circumstance. Social Security and Medicare benefits won't be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed rates. The home can never be in danger of being taken away by the lending institution or put up for sale against your will if you live longer than the loan term - even if the current property value goes below the loan balance. Call us at 866-300-1550 if you want to explore the advantages of reverse mortgages.
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