With a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without having to sell their homes. The lender gives you money determined by the equity you've accrued in your home; you receive a one-time amount, a monthly payment or a line of credit. Repayment is not required until when the homeowner puts his home up for sale, moves (such as to a retirement community) or dies. You or an estate representative must repay the reverse mortgage funds, interest accrued, and finance fees when your home is sold, or you can no longer call it your primary residence.
The conditions of a reverse mortgage normally are being sixty-two or older, maintaining the house as your primary residence, and having a low remaining mortgage balance or owning your home outright.
Many homeowners who are on a limited income and find themselves needing additional money find reverse mortgages helpful for their circumstance. Rates of interest can be fixed or adjustable while the money is nontaxable and does not interfere with Medicare or Social Security benefits. Your lender can't take the property away if you outlive your loan nor can you be obligated to sell your residence to repay the loan amount even if the balance grows to exceed current property value. If you would like to find out more about reverse mortgages, please call us at (888) 299-4585.