Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to tap into equity without the necessity of selling their home. Choosing between a monthly payment, a line of credit, or a lump sum, you may take out a loan based on your equity. Paying back your loan isn't necessary until after the borrower puts his home up for sale, moves (such as into a retirement community) or dies. After you sell your home or is no longer used as your primary residence, you (or your estate) must pay back the lending institution for the funds you obtained from your reverse mortgage as well as interest and other finance charges.
The conditions of a reverse mortgage loan often are being sixty-two or older, using the property as your primary residence, and having a low remaining mortgage balance or owning your home outright.
Reverse mortgages can be appropriate for retired homeowners or those who are no longer working but have a need to supplement their limited income. Rates of interest may be fixed or adjustable while the funds are nontaxable and don't affect Medicare or Social Security benefits. The residence can never be at risk 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 current property value creeps below the loan balance. Call us at 720-598-8300 to discuss your reverse mortgage options.
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