With a reverse mortgage (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without having to sell their homes. The lender pays you money based on your home equity amount; you receive a lump sum, a payment each month or a line of credit. The loan does not have to be repaid until the homeowner sells the home, moves away, or passes away. You or representative of your estate must repay the reverse mortgage funds, interest , and other finance charges when your home is sold, or you can no longer call it your primary residence.
The requirements of a reverse mortgage usually include being 62 or older, maintaining the property as your primary living place, and having a low remaining mortgage balance or having paid it off.
Reverse mortgages are appropriate for retired homeowners or those who are no longer bringing home a paycheck but must supplement their limited income. Social Security and Medicare benefits can not be affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed interest rates. Your residence is never at risk of being taken away by the lending institution or sold against your will if you live longer than your loan term - even if the current property value goes under the balance of the loan. Call us at 9254610500 to explore your reverse mortgage options.
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