Reverse mortgages (also called "home equity conversion loans") give older homeowners the ability to tap into home equity without having to sell their home. The lender pays out funds based on your home equity amount; you receive a one-time amount, a payment each month or a line of credit. The borrowed money does not have to be paid back until the homeowner sells his home, moves away, or passes away. You or your estate representative must repay the reverse mortgage funds, interest , and other finance charges when your property is sold, or you no longer live in it.
The conditions of a reverse mortgage loan usually are being 62 or older, maintaining the house as your main living place, and having a low balance on your mortgage or having paid it off.
Homeowners who live on a limited income and have a need for additional money find reverse mortgages advantageous for their situation. Social Security and Medicare benefits can't be affected; and the money is nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. The residence can never be at risk of being taken away from you by the lending institution or put up for sale without your consent if you live longer than your loan term - even if the current property value creeps under the balance of the loan. Call us at 866-300-1550 to discuss your reverse mortgage options.
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