With a reverse mortgage loan (also called a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without selling their homes. Deciding how you'd like to be paid: by a monthly payment amount, a line of credit, or a one-time payment, you can take out a loan based on your equity. The borrowed money does not have to be repaid until the homeowner sells his residence, moves out, or dies. You or your estate representative is required to pay back the reverse mortgage loan, interest accrued, and other finance charges when your home is sold, or you can no longer use it as your primary residence.
Usually, reverse mortgages are offered to borrowers who are at least sixty-two years of age, have a low or zero balance in a mortgage and use the home as your main living place.
Homeowners who live on a limited income and find themselves needing additional money find reverse mortgages advantageous for their situation. Social Security and Medicare benefits aren't affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. Your lender can't take the property away if you live past the loan term nor can you be made to sell your home to pay off your loan even when the balance is determined to exceed property value. If you would like to learn more about reverse mortgages, please call us at 6507631924.
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