Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to use their built-up home equity without having to sell their home. Choosing between a monthly payment amount, a line of credit, or a one-time payment, you may receive a loan amount determined by your equity. Paying back your loan isn't required until after the borrower puts his home up for sale, moves (such as to a care facility) or passes away. When you sell your property or you no longer use it as your primary residence, you (or your estate) must pay back the lender for the funds you got from the reverse mortgage plus interest among other fees.
Usually, reverse mortgages require youto be at least sixty-two years of age, have a small or zero balance owed against the home and maintain the property as your principal living place.
Reverse mortgages can be appropriate for retired homeowners or those who are no longer working but must add to their limited income. Social Security and Medicare benefits can't be affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed interest rates. Your lending institution will not take away your property if you live past the loan term nor can you be made to sell your home to repay the loan even when the loan balance is determined to exceed property value. If you would like to find out more about reverse mortgages, please call us at 7202537070.