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 having to sell their homes. Choosing between a monthly amount, a line of credit, or a lump sum, you can take out a loan amount determined by your home equity. Paying back your loan is not necessary until the time the homeowner sells the home, moves (such as to a care facility) or dies. When you sell your home or you no longer use it as your primary residence, you (or your estate) must pay back the lending institution for the funds you obtained from your reverse mortgage in addition to interest and other finance charges.
The conditions of a reverse mortgage normally include being sixty-two or older, using the property as your main residence, and holding a small remaining mortgage balance or having paid it off.
Many homeowners who live on a limited income and have a need for additional funds find reverse mortgages helpful for their circumstance. Rates of interest can be fixed or adjustable and the money is nontaxable and does not interfere with Medicare or Social Security benefits. Your lender is not able to take the property away if you live past the loan term nor can you be required to sell your home to pay off your loan amount even when the balance grows to exceed property value. Call us at 866-840-8745 x2 to look into your reverse mortgage options.
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