Reverse mortgages (also called "home equity conversion loans") enable older homeowners to tap into built-up equity without the necessity of selling their home. The lending institution pays you money based on your home equity amount; you get a one-time amount, a monthly payment or a line of credit. The loan does not have to be paid back until the homeowner sells the home, moves away, or passes away. At the time you sell your home or you no longer use it as your primary residence, you (or your estate) are required to repay the lender for the funds you got from the reverse mortgage plus interest and other finance charges.
Most reverse mortgages require you be at least sixty-two years old, have a low or zero balance in a mortgage and maintain the property as your main residence.
Many homeowners who live on a fixed income and need additional money find reverse mortgages helpful for their situation. Rates of interest may be fixed or adjustable while the money is nontaxable and does not affect Medicare or Social Security benefits. Your lender will not take the property away if you outlive your loan nor will you be required to sell your home to repay your loan even when the loan balance is determined to exceed property value. If you'd like to learn more about reverse mortgages, please call us at 4056158543.