In a reverse mortgage (sometimes referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. The lender pays you money determined by your home equity amount; you get a lump sum, a monthly payment or a line of credit. Paying back your loan isn't necessary until after the borrower sells the home, moves (such as to a care facility) or dies. You or representative of your estate has to repay the reverse mortgage amount, interest , and finance fees at the time your property is sold, or you are no longer living in it.
The conditions of a reverse mortgage generally include being 62 or older, using the house as your primary living place, and having a small remaining mortgage balance or owning your home outright.
Reverse mortgages can be appropriate for retired homeowners or those who are no longer working but need to supplement their fixed income. Social Security and Medicare benefits will not be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. The home is never in danger of being taken away by the lender or put up for sale without your consent if you live longer than your loan term - even if the current property value creeps below the loan balance. If you'd like to find out more about reverse mortgages, please contact us at 6507631924.
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