In a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without having to sell their homes. Deciding how you prefer to be paid: by a monthly amount, a line of credit, or a one-time payment, you may get a loan based on your home equity. The borrowed money does not have to be paid back until the homeowner sells the home, moves out, or dies. At the time you sell your home or is no longer used as your main residence, you (or your estate) have to repay the lending institution for the funds you got from the reverse mortgage as well as interest and other finance charges.
The requirements of a reverse mortgage loan usually include being sixty-two or older, using the house as your primary residence, and having a low balance on your mortgage or owning your home outright.
Reverse mortgages can be ideal for homeowners who are retired or no longer working but need to add to their income. Social Security and Medicare benefits will not be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. Your lender will not take the property away if you outlive your loan nor may you be required to sell your residence to pay off your loan amount even when the loan balance grows to exceed current property value. If you'd like to find out more about reverse mortgages, feel free to call us at 4056158543.
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