Reverse mortgages (also called "home equity conversion loans") enable older homeowners to tap into built-up equity without the necessity of selling their home. Deciding how you would prefer to to receive your money: by a monthly payment amount, a line of credit, or a one-time payment, you can receive a loan based on your equity. The loan does not have to be paid back until the homeowner sells the home, moves out, or dies. After you sell your property or you no longer use it as your primary residence, you (or your estate) are obligated to repay the lender for the money you received from your reverse mortgage plus interest among other finance charges.
Generally, reverse mortgages require youto be at least 62 years of age, have a small or zero balance in a mortgage and maintain the home as your principal residence.
Homeowners who are on a fixed income and have a need for additional funds find reverse mortgages advantageous for their circumstance. Rates of interest can be fixed or adjustable and the money is nontaxable and does not affect Social Security or Medicare benefits. Your lender can't take away your home if you outlive your loan nor can you be forced to sell your home to repay your loan amount even when the balance grows to exceed current property value. Contact us at (888) 299-4585 if you would like to explore the advantages of reverse mortgages.