With a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. Deciding how you'd prefer to to receive your funds: by a monthly amount, a line of credit, or a one-time payment, you may take out a loan based on your home equity. The loan does not have to be paid back until the borrower sells his residence, moves away, or passes away. After you sell your property or is no longer used as your main residence, you (or your estate) are obligated to pay back the lending institution for the cash you got from the reverse mortgage in addition to interest and other fees.
The requirements of a reverse mortgage loan generally are being sixty-two or older, using the property as your primary residence, and holding a low balance on your mortgage or owning your home outright.
Reverse mortgages can be helpful for homeowners who are retired or no longer bringing home a paycheck but must add to their limited income. Social Security and Medicare benefits aren't affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed rates. Your lender cannot take the property away if you outlive your loan nor may you be made to sell your home to repay the loan amount even when the balance is determined to exceed current property value. Contact us at (512) 291-6100 if you want to explore the benefits of reverse mortgages.
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