In a reverse mortgage (sometimes called a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without having to sell their homes. The lending institution pays out money determined by your home equity amount; you get a one-time amount, a payment each month or a line of credit. The borrowed money doesn't have to be repaid until the homeowner sells his home, moves out, or dies. When you sell your property or is no longer used as your main residence, you (or your estate) are required to pay back the lending institution for the cash you obtained from the reverse mortgage in addition to interest and other fees.
Most reverse mortgages are offered to borrowers who are at least 62 years old, have a low or zero balance in a mortgage and use the property as your main residence.
Homeowners who live on a fixed income and have a need for additional funds find reverse mortgages helpful for their circumstance. Social Security and Medicare benefits aren't affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed interest rates. Your lender cannot take away your residence if you live past the loan term nor may you be obligated to sell your home to repay the loan even when the balance grows to exceed property value. Call us at 2147390569 if you want to explore the benefits of reverse mortgages.