Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to tap into built-up equity without the necessity of selling their home. The lending institution gives you money determined by the equity you've built-up in your home; you get a one-time amount, a monthly payment or a line of credit. Repayment isn't necessary until when the borrower sells the property, moves (such as to a care facility) or dies. You or representative of your estate has to repay the reverse mortgage amount, interest accrued, and other finance charges after your home is sold, or you can no longer use it as your primary residence.
The requirements of a reverse mortgage loan generally are being sixty-two or older, using the property as your primary living place, and having a small balance on your mortgage or owning your home outright.
Many homeowners who live on a fixed income and need additional funds find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits aren't affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed interest rates. The lending institution will not take away your house if you outlive your loan nor may you be forced to sell your home to repay your loan even if the balance is determined to exceed current property value. Contact us at 866-840-8745 x2 to explore your reverse mortgage options.
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