Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to benefit from their built-up home equity without the necessity of selling their home. Choosing between a monthly payment amount, a line of credit, or a lump sum, you can receive a loan based on your equity. Repayment is not necessary until after the borrower sells the home, moves (such as to a care facility) or dies. When you sell your property or you no longer use it as your primary residence, you (or your estate) have to pay back the lending institution for the cash you received from your reverse mortgage in addition to interest and other fees.
Most reverse mortgages are appropriate for borrowers at least 62 years of age, have a small or zero balance owed against your home and use the home as your main residence.
Reverse mortgages can be helpful for retired homeowners or those who are no longer working and need to supplement their income. Social Security and Medicare benefits will not be affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed rates. The lender can't take the property away if you outlive your loan nor can you be required to sell your residence to repay your loan amount even when the balance is determined to exceed current property value. Call us at 866-300-1550 if you want to explore the benefits of reverse mortgages.
Do you have a question regarding a mortgage program?