In a reverse mortgage loan (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. Deciding how you would like to to receive your funds: by a monthly payment, a line of credit, or a one-time payment, you may take out a loan based on your equity. The borrowed money does not have to be repaid until the homeowner sells his home, moves away, or dies. When you sell your home or is no longer used as your main residence, you (or your estate) are obligated to repay the lending institution for the cash you got from the reverse mortgage as well as interest among other fees.
The conditions of a reverse mortgage loan usually include being 62 or older, maintaining the house as your main living place, and holding a low remaining mortgage balance or owning your home outright.
Reverse mortgages are helpful for homeowners who are retired or no longer bringing home a paycheck but need to supplement their fixed income. Social Security and Medicare benefits are not affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed rates. Your lending institution can't take away your house if you outlive your loan nor will you be obligated to sell your residence to repay the loan even if the loan balance is determined to exceed property value. Call us at (405) 615-8543 to discuss your reverse mortgage options.