With a reverse mortgage (sometimes called 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 lender gives you funds determined by your home equity amount; you receive a one-time amount, a payment every month or a line of credit. Paying back your loan is not necessary until the time the homeowner puts his home up for sale, moves (such as into a retirement community) or dies. After you sell your home or you no longer use it as your primary residence, you (or your estate) are required to repay the lending institution for the cash you got from the reverse mortgage plus interest and other finance charges.
Usually, reverse mortgages are offered to borrowers at least 62 years of age, have a small or zero balance in a mortgage and maintain the home as your main living place.
Many homeowners who are on a limited income and have a need for additional money find reverse mortgages ideal for their circumstance. Rates of interest may be fixed or adjustable and the money is nontaxable and doesn't adversely affect Social Security or Medicare benefits. The lending institution is not able to take the property away if you outlive your loan nor may you be obligated to sell your residence to pay off your loan amount even if the loan balance grows to exceed current property value. If you'd like to learn more about reverse mortgages, please contact us at 4056158543.