In a reverse mortgage loan (also referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. Deciding how you would prefer to to receive your funds: by a monthly payment, a line of credit, or a lump sum, you may take out a loan amount determined by your home equity. Repayment is not necessary until the borrower sells the property, moves (such as to a retirement community) or passes away. You or your estate representative is obligated to repay the reverse mortgage funds, interest accrued, and finance fees after your house is sold, or you no longer live in it.
The conditions of a reverse mortgage typically are being 62 or older, maintaining your home as your main living place, and having a small remaining mortgage balance or owning your home outright.
Homeowners who live on a limited income and need additional funds find reverse mortgages helpful for their situation. Interest rates can be fixed or adjustable while the money is nontaxable and doesn't adversely affect Social Security or Medicare benefits. The lending institution cannot take away your residence if you live past the loan term nor can you be made to sell your residence to pay off your loan amount even when the loan balance is determined to exceed property value. If you'd like to find out more about reverse mortgages, please call us at 8008057088.
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