With a reverse mortgage loan (also called a home equity conversion loan), borrowers 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 receive a lump sum, a monthly payment or a line of credit. The borrowed money doesn't have to be paid back until the borrower sells his residence, moves away, or passes away. You or an estate representative is obligated to pay back the reverse mortgage amount, interest accrued, and other finance fees after your property is sold, or you can no longer use it as your primary residence.
The conditions of a reverse mortgage loan usually include being sixty-two or older, maintaining the house as your primary residence, and holding a low balance on your mortgage or having paid it off.
Many homeowners who are on a limited income and need additional money find reverse mortgages advantageous for their situation. Social Security and Medicare benefits are not affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed rates. Your lending institution can't take away your house if you outlive your loan nor may you be forced to sell your residence to pay off the loan amount even when the balance grows to exceed current property value. Call us at 5626935048 if you'd like to explore the advantages of reverse mortgages.
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