Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to use their built-up home equity without the necessity of selling their home. The lending institution pays out money based on the equity you've accrued in your home; you receive a one-time amount, a monthly payment or a line of credit. Repayment is not required until the homeowner sells the property, moves (such as to a care facility) or dies. When you sell your property or you no longer use it as your main residence, you (or your estate) have to repay the lender for the cash you got from the reverse mortgage plus interest among other fees.
The requirements of a reverse mortgage often are being 62 or older, using the property as your main living place, and holding a low remaining mortgage balance or having paid it off.
Homeowners who are on a limited income and find themselves needing additional funds find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits can not be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed interest rates. Your home will never be in danger of being taken away from you by the lender or put up for sale without your consent if you live longer than the loan term - even if the current property value dips under the balance of the loan. If you would like to find out more about reverse mortgages, feel free to call us at 9254610500.
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