With a reverse mortgage (also called a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. The lender gives you money based on the equity you've built-up in your home; you get a lump sum, a monthly payment or a line of credit. The borrowed money does not have to be repaid until the borrower sells the home, moves away, or passes away. You or an estate representative must pay back the reverse mortgage loan, interest accrued, and other finance charges at the time your home is sold, or you no longer live in it.
Generally, reverse mortgages require you be at least sixty-two years of age, have a low or zero balance in a mortgage and use the house as your principal living place.
Many homeowners who live on a fixed income and need additional money find reverse mortgages helpful for their situation. Interest rates can be fixed or adjustable and the money is nontaxable and does not interfere with Medicare or Social Security benefits. The house is never at risk of being taken away by the lender or put up for sale against your will if you live past the loan term - even if the current property value goes under the loan balance. Call us at 6784672330 to look into your reverse mortgage options.
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