Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to benefit from their home equity without selling their home. The lending institution gives you money based on your home equity amount; you receive a one-time amount, a payment each month or a line of credit. The borrowed money does not have to be paid back until the homeowner sells his residence, moves out, or passes away. You or representative of your estate is obligated to repay the reverse mortgage loan, interest accrued, and finance charges after your property is sold, or you no longer live in it.
Most reverse mortgages require youto be at least sixty-two years of age, have a small or zero balance owed against the home and use the property as your main residence.
Many homeowners who live on a fixed income and find themselves needing additional funds find reverse mortgages ideal for their situation. Rates of interest may be fixed or adjustable while the funds are nontaxable and do not adversely affect Medicare or Social Security benefits. Your home is never at risk of being taken away from you by the lender or put up for sale against your will if you outlive the loan term - even if the current property value dips below the balance of the loan. Contact us at 4056158543 if you'd like to explore the benefits of reverse mortgages.