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 living expenses without selling their homes. The lending institution gives you money based on your home equity amount; you get a lump sum, a monthly payment or a line of credit. Paying back your loan is not required until the time the borrower sells the property, moves (such as to a retirement community) or passes away. After your home sells or you no longer use it as your primary residence, you (or your estate) are required to repay the lending institution for the money you got from your reverse mortgage plus interest among other finance charges.
The requirements of a reverse mortgage loan generally include being sixty-two or older, using the property as your main living place, and holding a small remaining mortgage balance or having paid it off.
Reverse mortgages are advantageous for homeowners who are retired or no longer bringing home a paycheck and need to supplement their fixed income. Rates of interest can be fixed or adjustable and the money is nontaxable and doesn't adversely affect Medicare or Social Security benefits. The lender will not take away your property if you live past the loan term nor will you be obligated to sell your home to repay your loan amount even if the loan balance is determined to exceed current property value. Contact us at 4056158543 to discuss your reverse mortgage options.