With a reverse mortgage (also referred to as a a home equity conversion loan), homeowners 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 every month or a line of credit. Repayment is not required until after the homeowner puts his home up for sale, moves (such as into a care facility) or passes away. At the time your house sells or is no longer used as your primary residence, you (or your estate) must repay the lender for the money you received from your reverse mortgage as well as interest among other fees.
Generally, reverse mortgages require youto be at least 62 years old, have a low or zero balance in a mortgage and use the house as your principal residence.
Homeowners who are on a limited income and find themselves needing additional funds find reverse mortgages helpful for their circumstance. Interest rates may be fixed or adjustable and the funds are nontaxable and do not adversely affect Social Security or Medicare benefits. The residence is never in danger of being taken away from you by the lender or sold without your consent if you outlive your loan term - even if the current property value dips under the balance of the loan. Contact us at 5626935048 to discuss your reverse mortgage options.
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