Reverse mortgages (also called "home equity conversion loans") enable older homeowners to benefit from their equity without selling their home. Choosing between a monthly payment, a line of credit, or a one-time payment, you can receive a loan amount determined by your equity. Paying back your loan isn't necessary until the time the borrower sells the property, moves (such as to a care facility) or dies. When you sell your home or is no longer used as your main residence, you (or your estate) have to pay back the lending institution for the money you got from the reverse mortgage in addition to interest and other finance charges.
The conditions of a reverse mortgage loan generally include being 62 or older, maintaining your home as your main residence, and having a small balance on your mortgage or owning your home outright.
Reverse mortgages can be ideal for homeowners who are retired or no longer bringing home a paycheck and need to supplement their fixed income. Social Security and Medicare benefits are not affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed interest rates. The lender is not able to take the property away if you live past the loan term nor will you be forced to sell your residence to repay the loan even when the balance grows to exceed current property value. If you'd like to find out more about reverse mortgages, feel free to contact us at 5122916100.
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