Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to tap into home equity without selling their home. Deciding how you'd like to be paid: by a monthly payment, a line of credit, or a one-time payment, you can receive a loan amount determined by your home equity. The borrowed money doesn't have to be repaid until the homeowner sells his home, moves away, or passes away. When you sell your home or is no longer used as your primary residence, you (or your estate) must pay back the lender for the money you received from the reverse mortgage in addition to interest among other fees.
The conditions of a reverse mortgage usually are being 62 or older, maintaining your house as your main residence, and holding a low balance on your mortgage or having paid it off.
Homeowners who live on a limited income and have a need for additional funds find reverse mortgages ideal for their circumstance. Rates of interest may be fixed or adjustable and the money is nontaxable and does not affect Medicare or Social Security benefits. Your lending institution can't take away your property if you outlive your loan nor may you be made to sell your home to repay your loan even when the loan balance grows to exceed current property value. Call us at 866-300-1550 to look into your reverse mortgage options.
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