With a reverse mortgage loan (also called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. Choosing between a monthly amount, a line of credit, or a one-time payment, you can get a loan based on your equity. Paying back your loan is not necessary until when the homeowner puts his home up for sale, moves (such as to a care facility) or dies. You or representative of your estate has to pay back the reverse mortgage amount, interest accrued, and other finance charges at the time your house is sold, or you no longer live in it.
The requirements of a reverse mortgage normally are being sixty-two or older, using the house as your main residence, and having a small remaining mortgage balance or having paid it off.
Reverse mortgages can be appropriate for retired homeowners or those who are no longer bringing home a paycheck and have a need to add to their income. Interest rates can be fixed or adjustable and the money is nontaxable and does not adversely affect Medicare or Social Security benefits. The home is never in danger of being taken away by the lending institution or put up for sale without your consent if you live longer than your loan term - even if the current property value dips below the loan balance. Contact us at 866-300-1550 to explore your reverse mortgage options.
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