Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to use their built-up equity without the necessity of selling their home. The lender gives you funds based on your home equity amount; you receive a one-time amount, a payment each month or a line of credit. Repayment is not required until after the borrower puts his home up for sale, moves (such as to a care facility) or passes away. You or representative of your estate must pay back the reverse mortgage loan, interest accrued, and other finance fees at the time your house is sold, or you can no longer use it as your primary residence.
The conditions of a reverse mortgage loan normally include being 62 or older, using the home as your primary residence, and holding a small balance on your mortgage or having paid it off.
Many homeowners who live on a fixed income and have a need for additional money find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits will not be affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed rates. Your lending institution isn't able to take the property away if you live past the loan term nor can you be made to sell your home to pay off the 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.
Do you have a question regarding a mortgage program?