In a reverse mortgage (also 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. The lending institution gives you funds based on your home equity amount; you get a lump sum, a monthly payment or a line of credit. The borrowed money 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 primary residence, you (or your estate) have to repay the lending institution for the funds you obtained from your reverse mortgage plus interest among other fees.
The requirements of a reverse mortgage loan normally are being 62 or older, maintaining your house as your primary living place, and having a small balance on your mortgage or owning your home outright.
Reverse mortgages are great for homeowners who are retired or no longer bringing home a paycheck and must add to their limited income. Social Security and Medicare benefits won't be affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed interest rates. Your residence is never at risk of being taken away by the lender or put up for sale against your will if you live longer than your loan term - even if the current property value goes under the loan balance. Contact us at 5122916100 to explore your reverse mortgage options.
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