In a reverse mortgage (also referred to as a 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 one-time payment, you may take out a loan based on your home equity. Repayment isn't required until after the homeowner sells the home, moves (such as into a retirement community) or passes away. You or your estate representative must repay the reverse mortgage loan, interest , and finance fees at the time your house is sold, or you can no longer call it your primary residence.
Usually, reverse mortgages are appropriate for borrowers who are at least 62 years of age, have a low or zero balance in a mortgage and maintain the home as your principal residence.
Reverse mortgages can be appropriate for retired homeowners or those who are no longer working but must add to their income. Rates of interest can be fixed or adjustable and the money is nontaxable and doesn't interfere with Social Security or Medicare benefits. Your home is never in danger of being taken away from you by the lender or sold against your will if you live past your loan term - even if the current property value creeps under the loan balance. If you would like to find out more about reverse mortgages, please call us at 6507631924.
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