Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to tap into equity without having to sell their home. The lender pays you money determined by the equity you've built-up in your home; you receive a lump sum, a monthly payment or a line of credit. The borrowed money does not have to be paid back until the borrower sells the residence, moves out, or passes away. You or an estate representative is required to pay back the reverse mortgage funds, interest accrued, and other finance charges at the time your house is sold, or you can no longer use it as your primary residence.
The conditions of a reverse mortgage loan often include being 62 or older, maintaining your home as your primary living place, and having a low balance on your mortgage or owning your home outright.
Reverse mortgages can be appropriate for homeowners who are retired or no longer working and have a need to supplement their income. Social Security and Medicare benefits can not be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. Your lending institution is not able to take away your residence if you outlive your loan nor will you be made to sell your residence to pay off the loan amount even when the balance is determined to exceed property value. Call us at 6784672330 if you would like to explore the advantages of reverse mortgages.
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