Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to tap into home equity without having to sell their home. The lender gives you money determined by the equity you've built-up in your home; you get a lump sum, a payment every month or a line of credit. Repayment isn't necessary until after the homeowner puts his home up for sale, moves (such as to a care facility) or passes away. When your home sells or is no longer used as your main residence, you (or your estate) have to pay back the lending institution for the money you received from your reverse mortgage as well as interest among other finance charges.
The conditions of a reverse mortgage usually are being sixty-two or older, using the house as your primary living place, and holding a low remaining mortgage balance or having paid it off.
Homeowners who are on a fixed income and find themselves needing additional money find reverse mortgages ideal for their situation. Rates of interest can be fixed or adjustable while the money is nontaxable and does not interfere with Social Security or Medicare benefits. The lender can't take the property away if you live past the loan term nor will you be required to sell your residence to repay your loan even when the balance grows to exceed current property value. Call us at 866-300-1550 if you would like to explore the benefits of reverse mortgages.
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