Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to tap into built-up home equity without having to sell their home. The lending institution gives you funds determined by the equity you've accrued in your home; you get a lump sum, a monthly payment or a line of credit. The borrowed money doesn't have to be repaid until the borrower sells the residence, moves out, or passes away. You or representative of your estate is obligated to pay back the reverse mortgage funds, interest accrued, and finance charges after your house is sold, or you no longer live in it.
Typically, reverse mortgages are available for homeowners who are at least sixty-two years of age, have a small or zero balance in a mortgage and use the home as your main residence.
Homeowners who are on a fixed income and have a need for additional money find reverse mortgages ideal for their situation. Social Security and Medicare benefits can not be affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed rates. The home is never in danger of being taken away by the lender or put up for sale without your consent if you outlive the loan term - even if the current property value goes under the loan balance. Call us at 866-300-1550 to look into your reverse mortgage options.
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