Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to use their equity without having to sell their home. Deciding how you would like to be paid: by a monthly payment, a line of credit, or a lump sum, you may receive a loan amount determined by your equity. Repayment isn't necessary until the time the homeowner puts his home up for sale, moves (such as to a retirement community) or passes away. You or your estate representative is required to pay back the reverse mortgage amount, interest , and other finance fees at the time your house is sold, or you no longer live in it.
The requirements of a reverse mortgage loan usually include being sixty-two or older, using the home as your primary living place, and holding a low balance on your mortgage or having paid it off.
Many homeowners who are on a fixed income and find themselves needing additional funds find reverse mortgages helpful for their circumstance. Social Security and Medicare benefits can't be affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed interest rates. Your home will never be in danger of being taken away from you by the lending institution or put up for sale without your consent if you live past your loan term - even if the property value goes below the loan balance. If you'd like to find out more about reverse mortgages, please call us at 720-598-8300.
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