In a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without having to sell their homes. The lender pays out money determined by your home equity amount; you get a lump sum, a monthly payment or a line of credit. The borrowed money doesn't have to be paid back until the homeowner sells his residence, moves out, or dies. After your home has been sold or you no longer use it as your main residence, you (or your estate) have to pay back the lending institution for the money you obtained from the reverse mortgage plus interest and other fees.
The conditions of a reverse mortgage loan usually include being 62 or older, maintaining your property as your primary living place, and holding a small remaining mortgage balance or owning your home outright.
Homeowners who live on a fixed income and have a need for additional money find reverse mortgages helpful for their circumstance. Rates of interest may be fixed or adjustable while the funds are nontaxable and do not adversely affect Medicare or Social Security benefits. Your house is never at risk of being taken away from you by the lending institution or put up for sale against your will if you live past your loan term - even if the property value goes below the loan balance. Contact us at 8008057088 to look into your reverse mortgage options.
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