Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to tap into built-up home equity without having to sell their home. Choosing between a monthly payment amount, a line of credit, or a lump sum, you can receive a loan based on your equity. Paying back your loan is not required until after the borrower sells the home, moves (such as to a care facility) or passes away. At the time you sell your property or you no longer use it as your main residence, you (or your estate) have to pay back the lender for the funds you got from the reverse mortgage as well as interest and other finance charges.
Most reverse mortgages are appropriate for borrowers who are at least sixty-two years of age, have a low or zero balance in a mortgage and use the home as your principal living place.
Reverse mortgages are appropriate for retired homeowners or those who are no longer working and must add to their income. Interest rates can be fixed or adjustable and the funds are nontaxable and do not interfere with Medicare or Social Security benefits. Your residence is never in danger of being taken away by the lending institution or sold against your will if you outlive the loan term - even if the current property value goes under the balance of the loan. Call us at (888) 299-4585 if you'd like to explore the advantages of reverse mortgages.