Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to use their built-up home equity without the necessity of selling their home. The lending institution pays you funds determined by your home equity amount; you get a one-time amount, a payment every month or a line of credit. Repayment is not required until the borrower sells the property, moves (such as into a care facility) or passes away. After you sell your property or is no longer used as your primary residence, you (or your estate) are obligated to pay back the lender for the money you obtained from the reverse mortgage plus interest and other finance charges.
The conditions of a reverse mortgage normally are being 62 or older, maintaining your home as your primary living place, and holding a low remaining mortgage balance or having paid it off.
Reverse mortgages can be ideal for homeowners who are retired or no longer working and need to add to their fixed income. Rates of interest can be fixed or adjustable and the funds are nontaxable and don't affect Medicare or Social Security benefits. Your house is never in danger of being taken away by the lending institution or put up for sale without your consent if you live longer than your loan term - even if the property value goes below the balance of the loan. Contact us at (888) 299-4585 if you'd like to explore the benefits of reverse mortgages.