In a reverse mortgage loan (also referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. The lending institution pays you money determined by your home equity amount; you receive a one-time amount, a payment each month or a line of credit. Paying back your loan is not necessary until the time the borrower puts his home up for sale, moves (such as into a care facility) or passes away. You or your estate representative is required to repay the reverse mortgage loan, interest accrued, and finance charges after your property is sold, or you no longer live in it.
The conditions of a reverse mortgage loan normally are being 62 or older, using the property as your main residence, and holding a low balance on your mortgage or owning your home outright.
Many homeowners who are on a fixed income and have a need for additional money find reverse mortgages advantageous for their situation. Social Security and Medicare benefits will not be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. Your residence is never at risk of being taken away by the lender or sold against your will if you live past your loan term - even if the property value creeps under the loan balance. Contact us at 5122916100 if you want to explore the benefits of reverse mortgages.
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