Reverse mortgages (also called "home equity conversion loans") give older homeowners the ability to benefit from their built-up equity without the necessity of selling their home. The lender gives you funds determined by the equity you've accrued in your home; you get a one-time amount, a payment each month or a line of credit. The loan does not have to be repaid until the borrower sells the residence, moves away, or dies. You or representative of your estate is required to repay the reverse mortgage loan, interest accrued, and finance fees at the time your home is sold, or you no longer live in it.
Most reverse mortgages are available for borrowers who are at least sixty-two years of age, have a small or zero balance in a mortgage and use the home as your main residence.
Many homeowners who live on a limited income and find themselves needing additional funds find reverse mortgages advantageous for their circumstance. Rates of interest may be fixed or adjustable while the funds are nontaxable and don't affect Social Security or Medicare benefits. The house will never be at risk of being taken away by the lender or sold without your consent if you live past your loan term - even if the current property value dips below the balance of the loan. Call us at (512) 291-6100 if you want to explore the advantages of reverse mortgages.
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