With a reverse mortgage (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. Choosing between a monthly amount, a line of credit, or a lump sum, you may receive a loan based on your home equity. Paying back your loan is not necessary until after the borrower sells the home, moves (such as to a care facility) or passes away. You or representative of your estate must repay the reverse mortgage amount, interest , and other finance fees at the time your home is sold, or you no longer live in it.
Most reverse mortgages require you be at least 62 years of age, have a small or zero balance in a mortgage and use the property as your principal living place.
Reverse mortgages are advantageous for homeowners who are retired or no longer bringing home a paycheck but need to add to their fixed income. Social Security and Medicare benefits can not be affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed rates. Your lending institution isn't able to take the property away if you live past the loan term nor may you be forced to sell your residence to pay off the loan amount even if the loan balance is determined to exceed property value. Contact us at (512) 291-6100 to explore your reverse mortgage options.
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