With a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without having to sell their homes. The lender gives you money based on the equity you've built-up in your home; you receive a lump sum, a monthly payment or a line of credit. The loan doesn't have to be paid back until the homeowner sells his home, moves away, or passes away. When your home has been sold or you no longer use it 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 and other finance charges.
The requirements of a reverse mortgage generally include being sixty-two or older, using the property as your main living place, and having a low remaining mortgage balance or having paid it off.
Reverse mortgages can be helpful for retired homeowners or those who are no longer bringing home a paycheck but need to add to their income. Social Security and Medicare benefits can not be affected; and the money is nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. Your residence is never in danger of being taken away by the lender or put up for sale without your consent if you live longer than your loan term - even if the current property value creeps under the loan balance. Call us at 4056158543 if you'd like to explore the advantages of reverse mortgages.