Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to tap into built-up equity without selling their home. Deciding how you prefer to to receive your funds: by a monthly payment, a line of credit, or a one-time payment, you may take out a loan amount determined by your equity. The loan doesn't have to be paid back until the homeowner sells his residence, moves away, or passes away. When your home sells or is no longer used as your main residence, you (or your estate) are obligated to pay back the lending institution for the cash you received from your reverse mortgage in addition to interest and other fees.
Most reverse mortgages are offered to homeowners who are at least sixty-two years old, have a low or zero balance in a mortgage and maintain the home as your principal residence.
Reverse mortgages can be appropriate for homeowners who are retired or no longer working and need to add to their limited income. Social Security and Medicare benefits won't be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. Your home can never be in danger of being taken away from you by the lender or sold without your consent if you live longer than the loan term - even if the property value goes below the loan balance. Contact us at (888) 299-4585 if you would like to explore the benefits of reverse mortgages.