In a reverse mortgage (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without selling their homes. The lending institution pays you funds based on the equity you've accrued in your home; you get a one-time amount, a payment each month or a line of credit. The borrowed money does not have to be repaid until the homeowner sells the home, moves out, or dies. When your house has been sold or is no longer used as your main residence, you (or your estate) must repay the lending institution for the money you got from the reverse mortgage in addition to interest and other finance charges.
The requirements of a reverse mortgage loan often include being sixty-two or older, using the property as your primary living place, and holding a small balance on your mortgage or owning your home outright.
Many homeowners who are on a limited income and have a need for additional funds find reverse mortgages ideal for their situation. Rates of interest may be fixed or adjustable while the money is nontaxable and does not interfere with Medicare or Social Security benefits. Your home will never be in danger of being taken away from you by the lender or put up for sale against your will if you live past your loan term - even if the current property value creeps under the balance of the loan. If you'd like to find out more about reverse mortgages, please contact us at 6507631924.
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.