In a reverse mortgage (also referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without having to sell their homes. The lending institution pays out money determined by the equity you've built-up in your home; you receive a lump sum, a monthly payment or a line of credit. Repayment is not required until after the borrower sells the property, moves (such as into a care facility) or passes away. You or representative of your estate is obligated to pay back the reverse mortgage amount, interest accrued, and other finance charges after your house is sold, or you are no longer living in it.
Most reverse mortgages are appropriate for borrowers who are at least sixty-two years old, have a small or zero balance in a mortgage and use the house as your main living place.
Reverse mortgages can be appropriate for homeowners who are retired or no longer bringing home a paycheck but need to add to their fixed income. Rates of interest can be fixed or adjustable while the money is nontaxable and does not affect Social Security or Medicare benefits. Your home will never be in danger of being taken away from you by the lender or put up for sale without your consent if you outlive your loan term - even if the property value creeps under the loan balance. Call us at 720-598-8300 to explore your reverse mortgage options.
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