Reverse mortgages (also called "home equity conversion loans") give older homeowners the ability to tap into home equity without having to sell their home. The lending institution pays out funds determined by your home equity amount; you get a lump sum, a monthly payment or a line of credit. The borrowed money does not have to be paid back until the borrower sells the home, moves away, or dies. You or representative of your estate must pay back the reverse mortgage amount, interest , and other finance charges after your property is sold, or you are no longer living in it.
The conditions of a reverse mortgage loan normally include being sixty-two or older, using the house as your main living place, and holding a low balance on your mortgage or having paid it off.
Homeowners who live on a limited income and have a need for additional funds find reverse mortgages ideal for their situation. Interest rates may be fixed or adjustable while the money is nontaxable and does not interfere with Social Security or Medicare benefits. The house can never be in danger of being taken away from you by the lending institution or put up for sale against your will if you live past the loan term - even if the current property value goes below the balance of the loan. Contact us at (800) 299-0270 to discuss your reverse mortgage options.