Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to benefit from their home equity without selling their home. The lending institution gives you funds based on your home equity amount; you receive a lump sum, a payment each month or a line of credit. The loan doesn't have to be paid back until the borrower sells his home, moves out, or passes away. You or your estate representative must pay back the reverse mortgage funds, interest accrued, and finance charges after your house is sold, or you are no longer living in it.
Typically, reverse mortgages require youto be at least 62 years old, have a small or zero balance owed against the home and use the home as your principal living place.
Many homeowners who are on a limited income and have a need for additional money find reverse mortgages helpful for their situation. Social Security and Medicare benefits aren't affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed interest rates. Your lending institution is not able to take the property away if you live past the loan term nor can you be forced to sell your home to pay off the loan amount even if the balance is determined to exceed current property value. Contact us at 6507631924 if you want to explore the benefits of reverse mortgages.
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