Reverse mortgages (also called "home equity conversion loans") enable older homeowners to use their equity without selling their home. Deciding how you'd prefer to be paid: by a monthly amount, a line of credit, or a lump sum, you can receive a loan based on your equity. Paying back your loan isn't necessary until after the homeowner puts his home up for sale, moves (such as to a care facility) or passes away. You or your estate representative is required to pay back the reverse mortgage loan, interest , and finance charges when your property is sold, or you are no longer living in it.
The requirements of a reverse mortgage loan normally include being 62 or older, using the property as your main living place, and having a small remaining mortgage balance or having paid it off.
Many homeowners who are on a fixed income and need additional money find reverse mortgages ideal for their circumstance. Social Security and Medicare benefits can not be affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed interest rates. Your residence will never be in danger of being taken away from you by the lender or put up for sale against your will if you outlive your loan term - even if the current property value goes below the loan balance. If you would like to find out more about reverse mortgages, feel free to contact us at 866-300-1550.
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