With a reverse mortgage (sometimes referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. The lending institution pays you funds based on the equity you've accrued 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 borrower sells the property, moves (such as into a care facility) or passes away. At the time your home has been sold or you no longer use it as your main residence, you (or your estate) must pay back the lender for the money you received from your reverse mortgage in addition to interest among other finance charges.
The conditions of a reverse mortgage loan normally are being 62 or older, using the house as your main residence, and holding a small remaining mortgage balance or owning your home outright.
Homeowners who are on a limited income and need additional money find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits can not be affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed interest rates. The lender isn't able to take the property away if you outlive your loan nor may you be forced to sell your residence to repay your loan even if the loan balance is determined to exceed property value. Contact us at (800) 299-0270 if you'd like to explore the advantages of reverse mortgages.