In a reverse mortgage (sometimes 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 accrued in your home; you get a one-time amount, a monthly payment or a line of credit. The borrowed money doesn't have to be repaid until the homeowner sells his residence, moves out, or dies. When your home sells or is no longer used as your main residence, you (or your estate) must repay the lending institution for the cash you obtained from your reverse mortgage in addition to interest and other finance charges.
The requirements of a reverse mortgage generally are being 62 or older, using the property as your main living place, and having a small remaining mortgage balance or owning your home outright.
Reverse mortgages can be ideal for retired homeowners or those who are no longer bringing home a paycheck and must add to their fixed income. Interest rates may be fixed or adjustable and the money is nontaxable and doesn't affect Medicare or Social Security benefits. The residence is never in danger of being taken away by the lender 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 balance of the loan. If you would like to learn more about reverse mortgages, please call us at 6784672330.
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