In a reverse mortgage (also called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. Deciding how you would like to to receive your funds: by a monthly amount, a line of credit, or a lump sum, you can take out a loan based on your home equity. The borrowed money does not have to be paid back until the borrower sells the residence, moves away, or passes away. At the time you sell your home or is no longer used as your main residence, you (or your estate) have to repay the lending institution for the cash you received from the reverse mortgage plus interest among other fees.
The conditions of a reverse mortgage loan usually include being 62 or older, maintaining your home as your primary living place, and having a small balance on your mortgage or having paid it off.
Reverse mortgages are advantageous for retired homeowners or those who are no longer bringing home a paycheck but need to add to their limited income. Social Security and Medicare benefits won't be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. The house is never at risk of being taken away from you by the lending institution or put up for sale without your consent if you live longer than your loan term - even if the property value goes under the loan balance. Contact us at 6507631924 if you want to explore the benefits of reverse mortgages.
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