In a reverse mortgage loan (also called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. Deciding how you'd like to be paid: by a monthly amount, a line of credit, or a one-time payment, you may receive a loan amount determined by your equity. Paying back your loan isn't necessary until the homeowner sells the home, moves (such as to a care facility) or dies. When your house sells or is no longer used as your main residence, you (or your estate) must repay the lender for the funds you received from the reverse mortgage plus interest among other fees.
Typically, reverse mortgages are offered to homeowners who are at least 62 years of age, have a low or zero balance owed against your home and use the house as your main living place.
Reverse mortgages are ideal for homeowners who are retired or no longer bringing home a paycheck and have a need to add to their income. Social Security and Medicare benefits aren't affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. The residence will never be at risk of being taken away from you by the lending institution or put up for sale against your will if you outlive your 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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