With a reverse mortgage (sometimes called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without having to sell their homes. The lender pays out money determined by your home equity amount; you receive a one-time amount, a payment every month or a line of credit. Paying back your loan isn't required until when the borrower sells the property, moves (such as to a retirement community) or dies. You or representative of your estate is obligated to pay back the reverse mortgage loan, interest , and other finance fees when your property is sold, or you can no longer use it as your primary residence.
The requirements of a reverse mortgage loan usually include being 62 or older, using the home as your primary living place, and having a low balance on your mortgage or owning your home outright.
Many homeowners who are on a limited income and find themselves needing additional funds find reverse mortgages helpful for their circumstance. Rates of interest may be fixed or adjustable while the funds are nontaxable and don't adversely affect Medicare or Social Security benefits. The lending institution can't take the property away if you live past the loan term nor may you be obligated to sell your home to pay off the loan even if the balance is determined to exceed property value. Call us at 9254610500 if you'd like to explore the benefits of reverse mortgages.
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