With a reverse mortgage (also referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. The lender gives you funds based on your home equity amount; you receive a lump sum, a payment each month or a line of credit. Paying back your loan is not necessary until the time the borrower sells the property, moves (such as into a care facility) or passes away. You or representative of your estate is obligated to pay back the reverse mortgage loan, interest , and finance charges after your home is sold, or you no longer live in it.
Usually, reverse mortgages are appropriate for homeowners who are at least sixty-two years old, have a low or zero balance owed against your home and use the house as your main residence.
Reverse mortgages are great for homeowners who are retired or no longer working and must add to their fixed income. Interest rates can be fixed or adjustable while the funds are nontaxable and do not interfere with Social Security or Medicare benefits. Your home will never be in danger of being taken away by the lending institution or sold without your consent if you outlive your loan term - even if the current property value creeps under the loan balance. If you would like to learn more about reverse mortgages, please call us at 5626935048.
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