Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to tap into home equity without having to sell their home. Deciding how you prefer to be paid: by a monthly payment, a line of credit, or a lump sum, you may receive a loan based on your home equity. The loan doesn't have to be paid back until the borrower sells the residence, moves out, or dies. You or representative of your estate has to repay the reverse mortgage funds, interest , and finance charges when your property is sold, or you are no longer living in it.
The conditions of a reverse mortgage normally are being sixty-two or older, maintaining your house as your main residence, and holding a low remaining mortgage balance or owning your home outright.
Reverse mortgages are helpful for retired homeowners or those who are no longer bringing home a paycheck but have a need to add to their income. Rates of interest can be fixed or adjustable while the money is nontaxable and doesn't adversely affect Social Security or Medicare benefits. The lending institution can't take away your property if you outlive your loan nor can you be forced to sell your residence to repay the loan amount even when the loan balance grows to exceed property value. Call us at (512) 291-6100 to discuss your reverse mortgage options.
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