In a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without selling their homes. Choosing between a monthly payment amount, a line of credit, or a lump sum, you may take out a loan amount determined by your home equity. Paying back your loan isn't required until when the borrower sells the property, moves (such as into a care facility) or dies. After you sell your property or you no longer use it as your primary residence, you (or your estate) are obligated to pay back the lending institution for the money you received from your reverse mortgage as well as interest and other fees.
The requirements of a reverse mortgage typically include being sixty-two or older, using the home as your main living place, and having a low balance on your mortgage or having paid it off.
Many homeowners who live on a fixed income and need additional funds find reverse mortgages ideal for their circumstance. Interest rates may be fixed or adjustable and the money is nontaxable and does not adversely affect Medicare or Social Security benefits. The lending institution is not able to take the property away if you live past the loan term nor can you be obligated to sell your home to repay the loan even if the loan balance is determined to exceed property value. Call us at 5122916100 if you would like to explore the advantages of reverse mortgages.
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