Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to use their home equity without selling their home. Deciding how you would prefer to to receive your funds: by a monthly amount, a line of credit, or a lump sum, you can receive a loan amount determined by your equity. Repayment isn't required until the homeowner sells the property, moves (such as to a retirement community) or dies. After your house sells or is no longer used as your primary residence, you (or your estate) have to pay back the lending institution for the cash you got from your reverse mortgage plus interest among other fees.
Usually, reverse mortgages require youto be at least 62 years of age, have a low or zero balance owed against the home and use the home as your main living place.
Many homeowners who are on a limited income and find themselves needing additional money find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits aren't affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed interest rates. Your lending institution isn't able to take away your house if you outlive your loan nor can you be required to sell your home to pay off the loan even when the loan balance grows to exceed current property value. If you would like to learn more about reverse mortgages, feel free to contact us at 7205988300.
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