Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to use their built-up equity without having to sell their home. Deciding how you would like to to receive your funds: by a monthly payment amount, a line of credit, or a lump sum, you can get a loan amount determined by your home equity. Paying back your loan isn't necessary until the homeowner puts his home up for sale, moves (such as to a retirement community) or passes away. After you sell your home or you no longer use it as your main residence, you (or your estate) must repay the lender for the money you got from the reverse mortgage in addition to interest and other fees.
The conditions of a reverse mortgage loan often include being sixty-two or older, maintaining the home as your primary residence, and having a low balance on your mortgage or having paid it off.
Reverse mortgages can be ideal for retired homeowners or those who are no longer bringing home a paycheck and need to supplement their fixed income. Interest rates can be fixed or adjustable while the funds are nontaxable and do not adversely affect Medicare or Social Security benefits. The lender will not take away your home if you live past the loan term nor may you be required to sell your residence to pay off your loan amount even if the loan balance grows to exceed current property value. Contact us at 866-300-1550 to discuss your reverse mortgage options.
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