In a reverse mortgage (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. The lending institution pays out funds determined by the equity you've built-up in your home; you get a lump sum, a monthly payment or a line of credit. Repayment isn't required until after the homeowner puts his home up for sale, moves (such as to a care facility) or passes away. When you sell your home or you no longer use it as your primary residence, you (or your estate) have to pay back the lender for the money you obtained from the reverse mortgage plus interest and other fees.
The requirements of a reverse mortgage loan often include being 62 or older, maintaining the property as your main living place, and having a small balance on your mortgage or owning your home outright.
Reverse mortgages are appropriate for homeowners who are retired or no longer bringing home a paycheck but must add to their limited income. Social Security and Medicare benefits can't be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. Your residence will never be in danger of being taken away by the lender or sold without your consent if you live longer than your loan term - even if the current property value dips below the balance of the loan. Call us at 9254610500 to discuss your reverse mortgage options.
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