With 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 having to sell their homes. The lending institution gives you funds determined by the equity you've accrued in your home; you receive a lump sum, a payment every month or a line of credit. The loan doesn't have to be repaid until the homeowner sells his residence, moves out, or dies. You or your estate representative must repay the reverse mortgage loan, interest , and finance fees at the time your home is sold, or you no longer live in it.
The requirements of a reverse mortgage loan often are being 62 or older, maintaining the home as your main residence, and having a low remaining mortgage balance or having paid it off.
Reverse mortgages can be helpful for homeowners who are retired or no longer working and have a need to add to their limited income. Rates of interest can be fixed or adjustable and the funds are nontaxable and don't interfere with Medicare or Social Security benefits. Your lending institution cannot take the property away if you live past the loan term nor will you be made to sell your home to pay off the loan even when the loan balance grows to exceed current property value. Call us at 7758957482 if you'd like to explore the advantages of reverse mortgages.
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