In a reverse mortgage loan (also 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 pays out money determined by your home equity amount; you receive a one-time amount, a monthly payment or a line of credit. Repayment isn't necessary until when the homeowner sells the property, moves (such as into a care facility) or passes away. You or representative of your estate is obligated to repay the reverse mortgage amount, interest accrued, and finance fees after your property is sold, or you are no longer living in it.
The conditions of a reverse mortgage loan generally include being 62 or older, using the house as your primary living place, and having a low balance on your mortgage or owning your home outright.
Many homeowners who live on a limited income and have a need for additional funds find reverse mortgages helpful for their circumstance. Rates of interest may be fixed or adjustable and the money is nontaxable and does not interfere with Medicare or Social Security benefits. The lending institution is not able to take away your house if you live past the loan term nor can you be forced to sell your residence to repay the loan amount even if the balance is determined to exceed property value. If you'd like to find out more about reverse mortgages, please contact us at 4056158543.