With a reverse mortgage (also called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. Choosing between 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 when the borrower puts his home up for sale, moves (such as into a retirement community) or passes away. You or your estate representative is obligated to repay the reverse mortgage loan, interest accrued, and other finance fees after your home is sold, or you no longer live in it.
Generally, reverse mortgages are available for borrowers who are at least 62 years of age, have a small or zero balance owed against the home and use the house as your main residence.
Reverse mortgages can be advantageous for homeowners who are retired or no longer working but must add to their limited income. Social Security and Medicare benefits aren't affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed rates. The lender can't take the property away if you live past the loan term nor will you be made to sell your home to repay the loan even if the balance is determined to exceed current property value. Contact us at 720-598-8300 to discuss your reverse mortgage options.
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