In a reverse mortgage loan (also referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without having to sell their homes. Choosing between a monthly amount, a line of credit, or a one-time payment, you may receive a loan based on your home equity. Paying back your loan is not necessary until when the homeowner puts his home up for sale, moves (such as to a retirement community) or dies. At the time you sell your home or you no longer use it as your main residence, you (or your estate) are obligated to pay back the lending institution for the cash you got from the reverse mortgage as well as interest among other fees.
Most reverse mortgages require youto be at least sixty-two years of age, have a small or zero balance owed against your home and maintain the home as your principal living place.
Many homeowners who live on a fixed income and need additional funds find reverse mortgages advantageous for their situation. Social Security and Medicare benefits can't be affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed rates. Your residence is never in danger of being taken away by the lender or put up for sale without your consent if you outlive your loan term - even if the current property value dips below the balance of the loan. If you'd like to learn more about reverse mortgages, feel free to contact us at 6507631924.
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