With a reverse mortgage (sometimes 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 you funds based on your home equity amount; you get a lump sum, a monthly payment or a line of credit. Repayment isn't required until after the homeowner puts his home up for sale, moves (such as into a care facility) or passes away. You or representative of your estate must pay back the reverse mortgage funds, interest , and other finance charges at the time your property is sold, or you are no longer living in it.
Generally, reverse mortgages are appropriate for borrowers at least sixty-two years old, have a low or zero balance in a mortgage and use the property as your main residence.
Many homeowners who live on a fixed income and find themselves needing additional money find reverse mortgages advantageous for their situation. Rates of interest can be fixed or adjustable and the funds are nontaxable and do not interfere with Social Security or Medicare benefits. The lender cannot take the property away if you outlive your loan nor will you be obligated to sell your residence to repay the loan amount even if the loan balance grows to exceed current property value. If you would like to learn more about reverse mortgages, feel free to call us at 4056158543.