Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to use their built-up equity without the necessity of selling their home. The lender pays out funds determined by the equity you've built-up in your home; you receive a one-time amount, a monthly payment or a line of credit. Repayment isn't necessary until the homeowner sells the home, moves (such as to a care facility) or passes away. When you sell your property or you no longer use it as your primary residence, you (or your estate) are obligated to repay the lender for the money you got from your reverse mortgage plus interest among other fees.
The requirements of a reverse mortgage loan typically include being 62 or older, maintaining your property as your main living place, and having a low remaining mortgage balance or having paid it off.
Many homeowners who are on a limited income and have a need for additional funds find reverse mortgages advantageous for their situation. Rates of interest can be fixed or adjustable and the funds are nontaxable and don't adversely affect Social Security or Medicare benefits. The lender can't take the property away if you outlive your loan nor may you be made to sell your residence to repay the loan amount even if the balance grows to exceed current property value. Call us at 5122916100 if you'd like to explore the advantages of reverse mortgages.
Do you have a question regarding a mortgage program?