Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to benefit from their built-up home equity without the necessity of selling their home. The lender gives you funds based on the equity you've built-up in your home; you receive a one-time amount, a payment every month or a line of credit. The borrowed money does not have to be paid back until the borrower sells his home, moves out, or passes away. After your home has been sold or is no longer used as your main residence, you (or your estate) have to pay back the lending institution for the cash you obtained from your reverse mortgage in addition to interest among other fees.
Generally, reverse mortgages are offered to borrowers at least 62 years of age, have a low or zero balance in a mortgage and use the property as your main residence.
Many homeowners who live on a fixed income and find themselves needing additional funds find reverse mortgages helpful for their circumstance. Social Security and Medicare benefits won't be affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed interest rates. The house can never be in danger of being taken away from you by the lending institution or sold against your will if you outlive the loan term - even if the current property value creeps below the loan balance. If you would like to learn more about reverse mortgages, please call us at 7758957482.
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