Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to benefit from their built-up equity without selling their home. Deciding how you would like to be paid: by a monthly payment amount, a line of credit, or a one-time payment, you may get a loan amount determined by your equity. Paying back your loan isn't necessary until when the borrower puts his home up for sale, moves (such as into a retirement community) or dies. After you sell your home or is no longer used as your primary residence, you (or your estate) have to repay the lender for the cash you received from the reverse mortgage in addition to interest among other fees.
Typically, reverse mortgages are available for homeowners at least 62 years old, have a low or zero balance owed against your home and use the home as your main living place.
Reverse mortgages can be helpful for retired homeowners or those who are no longer working but must add to their fixed income. Social Security and Medicare benefits are not affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed interest rates. Your residence is never at risk of being taken away from you by the lending institution or sold against your will if you live longer than the loan term - even if the property value creeps below the balance of the loan. Contact us at (405) 615-8543 if you'd like to explore the advantages of reverse mortgages.
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