With a reverse mortgage (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. Choosing between a monthly payment amount, a line of credit, or a lump sum, you can get a loan amount determined by your equity. The borrowed money doesn't have to be paid back until the borrower sells the residence, moves away, or passes away. You or your estate representative must repay the reverse mortgage funds, interest accrued, and other finance fees after your property is sold, or you are no longer living in it.
Generally, reverse mortgages require you be at least 62 years of age, have a low or zero balance in a mortgage and maintain the property as your principal residence.
Many homeowners who are on a limited income and need additional funds find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits can't be affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed interest rates. Your house will never be in danger of being taken away by the lending institution or put up for sale without your consent if you outlive the loan term - even if the property value creeps under the balance of the loan. If you would like to learn more about reverse mortgages, please call us at 5122916100.
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