Reverse mortgages (also called "home equity conversion loans") enable older homeowners to tap into built-up equity without selling their home. The lending institution gives you money based on the equity you've accrued in your home; you receive a lump sum, a payment every month or a line of credit. The borrowed money doesn't have to be paid back until the borrower sells the home, moves out, or dies. You or your estate representative must pay back the reverse mortgage funds, interest accrued, and finance charges after your home is sold, or you no longer live in it.
Most reverse mortgages require youto be at least 62 years of age, have a low or zero balance owed against the home and maintain the home as your principal residence.
Reverse mortgages are ideal for homeowners who are retired or no longer bringing home a paycheck and have a need to add to their income. Rates of interest may be fixed or adjustable and the funds are nontaxable and don't interfere with Medicare or Social Security benefits. The lending institution cannot take away your home if you live past the loan term nor will you be required to sell your home to repay your loan even when the balance grows to exceed property value. If you would like to learn more about reverse mortgages, please contact us at 866-300-1550.
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