Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to tap into equity without having to sell their home. The lender gives you funds determined by your home equity amount; you receive a lump sum, a payment every month or a line of credit. Paying back your loan isn't necessary until the time the homeowner sells the property, moves (such as into a retirement community) or dies. You or representative of your estate is required to repay the reverse mortgage amount, interest accrued, and finance fees after your house is sold, or you no longer live in it.
The conditions of a reverse mortgage typically include being sixty-two or older, maintaining the house as your primary living place, and having a low balance on your mortgage or owning your home outright.
Reverse mortgages are great for homeowners who are retired or no longer bringing home a paycheck and have a need to add to their limited income. Social Security and Medicare benefits can not be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed interest rates. The lending institution will not take the property away if you live past the loan term nor may you be made to sell your residence to repay your loan even when the balance grows to exceed current property value. Call us at 9254610500 if you would like to explore the advantages of reverse mortgages.
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