Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to benefit from their built-up home equity without selling their home. The lending institution gives you funds determined by your home equity amount; you get a lump sum, a monthly payment or a line of credit. Paying back your loan isn't required until after the homeowner puts his home up for sale, moves (such as to a care facility) or passes away. At the time your house has been sold or is no longer used as your main residence, you (or your estate) must pay back the lending institution for the cash you got from the reverse mortgage as well as interest and other fees.
Most reverse mortgages are available for borrowers who are at least 62 years of age, have a small or zero balance owed against the home and use the property as your principal living place.
Homeowners who are on a limited income and have a need for additional money find reverse mortgages helpful for their circumstance. Interest rates can be fixed or adjustable and the money is nontaxable and does not adversely affect Medicare or Social Security benefits. Your lender isn't able to take away your home if you live past the loan term nor will you be forced to sell your home to pay off the loan amount even when the balance is determined to exceed property value. Call us at 866-840-8745 x2 to explore your reverse mortgage options.
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