With a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. The lending institution gives you money determined by your home equity amount; you receive a lump sum, a payment every month or a line of credit. Repayment is not required until the time the homeowner sells the home, moves (such as to a care facility) or passes away. At the time you sell your property or you no longer use it as your primary residence, you (or your estate) have to pay back the lending institution for the money you got from your reverse mortgage as well as interest among other fees.
Generally, reverse mortgages require youto be at least 62 years old, have a low or zero balance owed against your home and use the house as your principal residence.
Homeowners who live on a limited income and need additional funds find reverse mortgages advantageous for their situation. Social Security and Medicare benefits won't be affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed rates. Your lending institution can't take away your home if you outlive your loan nor can you be forced to sell your residence to repay your loan amount even if the balance grows to exceed current property value. If you would like to learn more about reverse mortgages, feel free to contact us at 866-300-1550.
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