Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to use their equity without the necessity of selling their home. Deciding how you would like to be paid: by a monthly payment, a line of credit, or a lump sum, you can take out a loan amount determined by your equity. The loan doesn't have to be paid back until the borrower sells the residence, moves away, or passes away. When your home has been sold or is no longer used as your primary residence, you (or your estate) have to repay the lending institution for the cash you obtained from your reverse mortgage in addition to interest and other fees.
Usually, reverse mortgages are offered to homeowners who are at least 62 years old, have a small or zero balance owed against the home and use the house as your principal residence.
Reverse mortgages are helpful for retired homeowners or those who are no longer working and have a need to add to their limited income. Interest rates may be fixed or adjustable and the money is nontaxable and doesn't adversely affect Medicare or Social Security benefits. Your residence can never be in danger of being taken away by the lending institution or put up for sale against your will if you live past the loan term - even if the current property value creeps under the loan balance. Call us at 866-300-1550 to discuss your reverse mortgage options.
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