In a reverse mortgage loan (sometimes called a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without having to sell their homes. The lender pays you funds determined by your home equity amount; you get a one-time amount, a payment each month or a line of credit. The borrowed money does not have to be paid back until the homeowner sells his home, moves out, or passes away. You or representative of your estate has to pay back the reverse mortgage funds, interest , and other finance fees at the time your house is sold, or you no longer live in it.
Most reverse mortgages require you be at least sixty-two years old, have a low or zero balance in a mortgage and maintain the property as your main living place.
Reverse mortgages can be ideal for homeowners who are retired or no longer working and must supplement their income. Social Security and Medicare benefits aren't affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed rates. The lender isn't able to take away your residence if you outlive your loan nor will you be made to sell your residence to repay your loan even if the loan balance is determined to exceed property value. If you'd like to find out more about reverse mortgages, please contact us at 5122916100.
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