Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to benefit from their home equity without having to sell their home. The lender gives you funds determined by your home equity amount; you get a lump sum, a payment each month or a line of credit. Paying back your loan is not required until the time the homeowner puts his home up for sale, moves (such as to a care facility) or passes away. After you sell your property or is no longer used as your primary residence, you (or your estate) must repay the lending institution for the cash you received from your reverse mortgage in addition to interest among other fees.
Usually, reverse mortgages require youto be at least 62 years old, have a small or zero balance in a mortgage and use the home as your principal residence.
Reverse mortgages are advantageous for retired homeowners or those who are no longer bringing home a paycheck and have a need to supplement their fixed income. Social Security and Medicare benefits aren't affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed interest rates. The lending institution isn't able to take away your home if you outlive your loan nor will you be made to sell your home to repay the loan amount even when the balance is determined to exceed property value. Call us at (512) 291-6100 to explore your reverse mortgage options.
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