Reverse mortgages (also called "home equity conversion loans") enable older homeowners to tap into built-up equity without having to sell their home. The lender gives you funds determined by your home equity amount; you get a lump sum, a monthly payment or a line of credit. Paying back your loan isn't necessary until the time the borrower sells the property, moves (such as into a retirement community) or dies. You or your estate representative must pay back the reverse mortgage loan, interest accrued, and finance charges when your home is sold, or you are no longer living in it.
Usually, reverse mortgages are offered to borrowers who are at least sixty-two years of age, have a low or zero balance owed against the home and maintain the home as your principal living place.
Homeowners who live on a limited income and have a need for additional funds find reverse mortgages helpful for their circumstance. Social Security and Medicare benefits aren't affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed rates. Your residence is never in danger of being taken away by the lender or put up for sale without your consent if you outlive your loan term - even if the property value dips below the balance of the loan. If you'd like to find out more about reverse mortgages, feel free to call us at 4056158543.