With a reverse mortgage loan (also referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without having to sell their homes. Deciding how you would prefer to to receive your money: by a monthly payment, a line of credit, or a lump sum, you can receive a loan based on your equity. The loan doesn't have to be repaid until the borrower sells his residence, moves away, or dies. You or representative of your estate must pay back the reverse mortgage loan, interest accrued, and other finance charges after your home is sold, or you can no longer use it as your primary residence.
Generally, reverse mortgages require youto be at least sixty-two years old, have a low or zero balance in a mortgage and maintain the home as your principal living place.
Many homeowners who are on a fixed income and need additional funds find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits are not affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed interest rates. Your house can never be at risk of being taken away from you by the lending institution or put up for sale without your consent if you live past the loan term - even if the property value creeps below the balance of the loan. Contact us at 720-598-8300 to explore your reverse mortgage options.
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