Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to tap into built-up home equity without having to sell their home. Choosing between a monthly payment, a line of credit, or a one-time payment, you can receive a loan based on your home equity. The borrowed money doesn't have to be repaid until the homeowner sells the residence, moves out, or dies. You or representative of your estate has to repay the reverse mortgage loan, interest accrued, and finance charges at the time your house is sold, or you are no longer living in it.
The requirements of a reverse mortgage generally are being 62 or older, using the property as your primary living place, and having a low remaining mortgage balance or having paid it off.
Many homeowners who live on a fixed income and have a need for additional money find reverse mortgages advantageous for their circumstance. Interest rates may be fixed or adjustable while the funds are nontaxable and do not adversely affect Social Security or Medicare benefits. Your home can never be at risk of being taken away by the lender or sold against your will if you outlive the loan term - even if the current property value creeps under the loan balance. Call us at 6784672330 if you want to explore the benefits of reverse mortgages.
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