With a reverse mortgage loan (also referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without selling their homes. The lender pays you money based on your home equity amount; you receive a lump sum, a monthly payment or a line of credit. Paying back your loan is not required until the time the homeowner sells the property, moves (such as to a retirement community) or dies. At the time you sell your property or is no longer used as your primary residence, you (or your estate) must repay the lending institution for the cash you got from the reverse mortgage in addition to interest and other fees.
Typically, reverse mortgages are available for homeowners at least sixty-two years of age, have a small or zero balance owed against the home and maintain the home as your principal residence.
Reverse mortgages are advantageous for retired homeowners or those who are no longer bringing home a paycheck but must supplement their limited income. Social Security and Medicare benefits won't be affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed interest rates. The home is never in danger of being taken away by the lending institution or sold without your consent if you outlive your loan term - even if the current property value dips under the loan balance. Call us at 7202537070 if you want to explore the benefits of reverse mortgages.