Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to tap into home equity without selling their home. The lending institution gives you money determined by your home equity amount; you get a lump sum, a payment each month or a line of credit. The loan doesn't have to be repaid until the borrower sells the residence, moves away, or dies. You or an estate representative has to repay the reverse mortgage funds, interest accrued, and finance charges at the time your home is sold, or you can no longer use it as your primary residence.
Most reverse mortgages are available for borrowers at least sixty-two years old, have a low or zero balance in a mortgage and maintain the home as your principal living place.
Homeowners who are on a fixed income and find themselves needing additional money find reverse mortgages helpful for their situation. Interest rates can be fixed or adjustable while the funds are nontaxable and don't adversely affect Social Security or Medicare benefits. The 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 live past the loan term - even if the property value creeps under the balance of the loan. Call us at 2148657442 if you would like to explore the advantages of reverse mortgages.