Reverse mortgages (also called "home equity conversion loans") enable older homeowners to use their equity without the necessity of selling their home. The lending institution pays you money determined by the equity you've built-up in your home; you get a one-time amount, a payment every month or a line of credit. Paying back your loan isn't necessary until the time the homeowner puts his home up for sale, moves (such as into a retirement community) or passes away. You or an estate representative is required to pay back the reverse mortgage loan, interest , and finance charges at the time your property is sold, or you can no longer call it your primary residence.
The conditions of a reverse mortgage often are being 62 or older, using the house as your main residence, and having a small balance on your mortgage or having paid it off.
Reverse mortgages can be helpful for homeowners who are retired or no longer bringing home a paycheck but must supplement their income. Interest rates can be fixed or adjustable and the funds are nontaxable and don't interfere with Social Security or Medicare benefits. The lending institution will not take away your house if you outlive your loan nor will you be obligated to sell your home to pay off the loan amount even if the balance grows to exceed current property value. If you would like to find out more about reverse mortgages, please contact us at 9254610500.
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