Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to benefit from their equity without having to sell their home. Deciding how you'd prefer to be paid: by a monthly amount, a line of credit, or a one-time payment, you can take out a loan based on your home equity. The borrowed money does not have to be paid back until the borrower sells his home, moves out, or passes away. After you sell your home or you no longer use it as your main residence, you (or your estate) have to pay back the lending institution for the funds you obtained from the reverse mortgage in addition to interest among other finance charges.
The requirements of a reverse mortgage loan generally include being 62 or older, using the home as your main living place, and holding a small remaining mortgage balance or having paid it off.
Many homeowners who live on a fixed income and find themselves needing additional money find reverse mortgages helpful for their situation. Social Security and Medicare benefits can not be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. The home is never at risk of being taken away by the lender or put up for sale against your will if you outlive your loan term - even if the property value goes under the balance of the loan. If you'd like to find out more about reverse mortgages, please call us at 866-300-1550.
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