Reverse mortgages (also called "home equity conversion loans") enable older homeowners to use their home equity without having to sell their home. The lender gives you money determined by your home equity amount; you receive a lump sum, a monthly payment or a line of credit. The borrowed money does not have to be paid back until the homeowner sells the home, moves away, or passes away. You or representative of your estate must repay the reverse mortgage loan, interest accrued, and finance fees at the time your home is sold, or you are no longer living in it.
The conditions of a reverse mortgage loan usually are being sixty-two or older, using the property as your main living place, and having a small balance on your mortgage or owning your home outright.
Many homeowners who live on a fixed income and have a need for additional money find reverse mortgages ideal for their circumstance. Interest rates may be fixed or adjustable and the money is nontaxable and does not adversely affect Medicare or Social Security benefits. Your house is never in danger of being taken away by the lender or sold against your will if you live past the loan term - even if the property value creeps under the loan balance. Call us at 720-598-8300 if you want to explore the advantages of reverse mortgages.
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