In a reverse mortgage (also 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. Choosing between a monthly payment, a line of credit, or a lump sum, you can get a loan based on your equity. Repayment isn't required until the borrower sells the property, moves (such as into a retirement community) or dies. After 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 funds you got from your reverse mortgage plus interest among other finance charges.
Usually, reverse mortgages require youto be at least sixty-two years old, have a small or zero balance in a mortgage and maintain the property as your main residence.
Reverse mortgages can be appropriate for retired homeowners or those who are no longer bringing home a paycheck and must supplement their income. Social Security and Medicare benefits are not affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. The lender can't take the property away if you outlive your loan nor may you be made to sell your home to pay off the loan amount even when the loan balance grows to exceed current property value. Call us at (405) 615-8543 if you want to explore the benefits of reverse mortgages.
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