Reverse mortgages (also called "home equity conversion loans") enable older homeowners to benefit from their equity without having to sell their home. The lending institution pays you funds determined by your home equity amount; you receive a one-time amount, a payment every month or a line of credit. The loan doesn't have to be paid back until the homeowner sells his home, moves away, or passes away. You or an estate representative has to pay back the reverse mortgage funds, interest accrued, and finance fees after your property is sold, or you can no longer call it your primary residence.
Usually, reverse mortgages are offered to borrowers at least 62 years of age, have a small or zero balance in a mortgage and use the house as your main residence.
Reverse mortgages are great for homeowners who are retired or no longer bringing home a paycheck but need to supplement their fixed income. Interest rates may be fixed or adjustable and the money is nontaxable and does not interfere with Medicare or Social Security benefits. Your house will never be at risk of being taken away from you by the lending institution or sold without your consent if you outlive the loan term - even if the current property value goes under the balance of the loan. If you would like to learn more about reverse mortgages, please call us at 5626935048.
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