Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to benefit from their built-up home equity without selling their home. The lender pays out funds determined by the equity you've built-up in your home; you receive a one-time amount, a monthly payment or a line of credit. The loan does not have to be repaid until the borrower sells his home, moves away, or dies. You or representative of your estate must pay back the reverse mortgage amount, interest , and finance charges at the time your property is sold, or you no longer live in it.
Typically, reverse mortgages are available for borrowers at least 62 years of age, have a small or zero balance owed against the home and maintain the house as your principal residence.
Many homeowners who live on a fixed income and need additional money find reverse mortgages helpful for their situation. Interest rates may be fixed or adjustable while the money is nontaxable and does not interfere with Medicare or Social Security benefits. Your residence is never at risk of being taken away from you by the lending institution or put up for sale without your consent if you live past the loan term - even if the current property value dips below the balance of the loan. Call us at 6784672330 if you want to explore the advantages of reverse mortgages.
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