In 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 lender pays out funds determined by the equity you've built-up in your home; you receive a lump sum, a monthly payment or a line of credit. Paying back your loan is not necessary until the time the borrower puts his home up for sale, moves (such as to a retirement community) or passes away. At the time your house sells or is no longer used as your primary residence, you (or your estate) are required to pay back the lender for the money you got from the reverse mortgage plus interest and other finance charges.
The requirements of a reverse mortgage loan generally include being 62 or older, using the home as your main living place, and holding a small balance on your mortgage or owning your home outright.
Reverse mortgages are helpful for homeowners who are retired or no longer bringing home a paycheck but need to add to their income. Interest rates may be fixed or adjustable and the funds are nontaxable and don't adversely affect Medicare or Social Security benefits. The lender cannot take away your home if you live past the loan term nor will you be forced to sell your residence to pay off your loan even when the balance is determined to exceed current property value. Call us at 5626935048 if you'd like to explore the benefits of reverse mortgages.
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