With a reverse mortgage loan (sometimes called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. Deciding how you would like to to receive your money: by a monthly payment, a line of credit, or a one-time payment, you can get a loan amount determined by your home equity. The loan doesn't have to be repaid until the borrower sells his residence, moves out, or dies. When you sell your home or you no longer use it as your main residence, you (or your estate) have to pay back the lender for the cash you received from your reverse mortgage plus interest among other fees.
The conditions of a reverse mortgage normally are being sixty-two or older, maintaining your house as your main residence, and holding a small remaining mortgage balance or owning your home outright.
Reverse mortgages can be great for retired homeowners or those who are no longer bringing home a paycheck and must add to their limited income. Social Security and Medicare benefits can't be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. Your lending institution will not take the property away if you live past the loan term nor may you be obligated to sell your residence to pay off your loan amount even when the loan balance is determined to exceed property value. If you'd like to find out more about reverse mortgages, please call us at 720-598-8300.
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