With a reverse mortgage loan (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 gives you funds 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 isn't required until when the homeowner puts his home up for sale, moves (such as into a care facility) or dies. You or an estate representative has to repay the reverse mortgage loan, interest , and finance fees at the time your house is sold, or you are no longer living in it.
Generally, reverse mortgages require youto be at least 62 years of age, have a low or zero balance owed against your home and maintain the house as your main residence.
Homeowners who live on a fixed income and find themselves needing additional funds find reverse mortgages advantageous for their situation. 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 lender will not take the property away if you live past the loan term nor may you be made to sell your home to pay off your loan amount even when the loan balance is determined to exceed property value. Call us at 9254610500 if you'd like to explore the advantages of reverse mortgages.
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