Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to benefit from their equity without having to sell their home. Deciding how you prefer to to receive your money: by a monthly payment, a line of credit, or a one-time payment, you may take out a loan amount determined by your equity. The loan does not have to be repaid until the borrower sells the residence, moves away, or dies. At the time you sell your home or you no longer use it as your primary residence, you (or your estate) are required to pay back the lending institution for the cash you received from your reverse mortgage in addition to interest and other finance charges.
The conditions of a reverse mortgage generally include being 62 or older, using the house as your main residence, and holding a small balance on your mortgage or having paid it off.
Reverse mortgages are helpful for retired homeowners or those who are no longer bringing home a paycheck but must add to their limited income. Social Security and Medicare benefits won't be affected; and the money is nontaxable. Reverse Mortgages can have adjustable or fixed rates. The residence is never in danger of being taken away by the lending institution or put up for sale without your consent if you live past your loan term - even if the current property value dips below the loan balance. Contact us at 866-300-1550 to discuss your reverse mortgage options.
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