In a reverse mortgage (sometimes called 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 be paid: by a monthly payment amount, a line of credit, or a lump sum, you may receive a loan amount determined by your equity. The loan doesn't have to be paid back until the borrower sells his home, moves out, or passes away. At the time you sell your property or is no longer used as your primary residence, you (or your estate) are required to repay the lending institution for the funds you obtained from the reverse mortgage plus interest among other finance charges.
Most reverse mortgages require you be at least 62 years old, have a low or zero balance in a mortgage and maintain the property as your main living place.
Homeowners who are on a fixed income and find themselves needing additional money find reverse mortgages advantageous for their situation. Interest rates may be fixed or adjustable while the funds are nontaxable and do not affect Social Security or Medicare benefits. The residence will never be at risk of being taken away by the lending institution or put up for sale against your will if you live longer than the loan term - even if the property value goes below the balance of the loan. Contact us at 720-598-8300 if you'd like to explore the advantages of reverse mortgages.
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