In a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. The lender pays out funds determined by your home equity amount; you receive a lump sum, a monthly payment or a line of credit. Repayment is not necessary until the time the homeowner puts his home up for sale, moves (such as into a retirement community) or dies. When your home sells or is no longer used as your main residence, you (or your estate) must pay back the lender for the funds you obtained from your reverse mortgage plus interest among other fees.
The conditions of a reverse mortgage loan usually include being sixty-two or older, using the home as your primary residence, and holding a small remaining mortgage balance or having paid it off.
Reverse mortgages can be ideal for homeowners who are retired or no longer bringing home a paycheck but must add to their limited income. Social Security and Medicare benefits are not affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. Your lender will not take the property away if you outlive your loan nor will you be forced to sell your home to repay your loan amount even if the balance is determined to exceed property value. If you'd like to learn more about reverse mortgages, feel free to contact us at 7205988300.
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