Reverse mortgages (also called "home equity conversion loans") enable older homeowners to tap into built-up home equity without having to sell their home. The lending institution pays you money based on your home equity amount; you receive a lump sum, a monthly payment or a line of credit. Repayment isn't necessary until when the homeowner sells the property, moves (such as into a retirement community) or passes away. You or an estate representative is required to pay back the reverse mortgage loan, interest accrued, and other finance charges at the time your property is sold, or you no longer live in it.
The requirements of a reverse mortgage loan usually are being 62 or older, using the home as your main residence, and holding a low balance on your mortgage or having paid it off.
Reverse mortgages can be great for homeowners who are retired or no longer working and need to add to their limited income. Interest rates can be fixed or adjustable while the money is nontaxable and doesn't interfere with Social Security or Medicare benefits. The lending institution can't take the property away if you live past the loan term nor may you be forced to sell your home to repay the loan amount even when the loan balance grows to exceed property value. Contact us at 5626935048 if you would like to explore the advantages of reverse mortgages.
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