Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to use their equity without the necessity of selling their home. The lender gives you money determined by your home equity amount; you get a one-time amount, a payment every month or a line of credit. The loan doesn't have to be paid back until the borrower sells the home, moves out, or dies. You or an estate representative has to repay the reverse mortgage loan, interest , and finance charges after your home is sold, or you can no longer call it your primary residence.
The requirements of a reverse mortgage loan generally include being sixty-two or older, maintaining your house as your main residence, and holding a low balance on your mortgage or having paid it off.
Reverse mortgages are helpful for retired homeowners or those who are no longer working but have a need to add to their limited income. Social Security and Medicare benefits can't be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed interest rates. The home is never in danger of being taken away from you by the lender or sold against your will if you live longer than your loan term - even if the property value dips under the loan balance. If you'd like to learn more about reverse mortgages, please call us at 6507631924.
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