With a reverse mortgage loan (also called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. Deciding how you prefer to to receive your funds: by a monthly payment amount, a line of credit, or a lump sum, you may get a loan amount determined by your home equity. Paying back your loan is not necessary until the time the borrower puts his home up for sale, moves (such as to a retirement community) or passes away. You or an estate representative must pay back the reverse mortgage amount, interest accrued, and other finance charges after your property is sold, or you are no longer living in it.
The requirements of a reverse mortgage typically are being sixty-two or older, maintaining the house as your main residence, and having a low balance on your mortgage or having paid it off.
Reverse mortgages are advantageous for retired homeowners or those who are no longer working and have a need to add to their income. Social Security and Medicare benefits are not affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed rates. Your lender is not able to take the property away if you live past the loan term nor will you be obligated to sell your home to repay the loan even when the balance grows to exceed property value. Call us at 866-300-1550 to explore your reverse mortgage options.
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