Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to use their equity without having to sell their home. The lending institution pays out funds based on your home equity amount; you receive a lump sum, a monthly payment or a line of credit. Repayment is not required until the time the borrower sells the property, moves (such as to a retirement community) or dies. You or an estate representative has to pay back the reverse mortgage loan, interest , and finance fees at the time your house is sold, or you are no longer living in it.
The conditions of a reverse mortgage typically include being sixty-two or older, using the house as your primary living place, and having a small remaining mortgage balance or having paid it off.
Reverse mortgages are great for homeowners who are retired or no longer bringing home a paycheck and must supplement their limited income. Social Security and Medicare benefits will not be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed rates. Your house can never be at risk of being taken away from you by the lending institution or put up for sale against your will if you live longer than your loan term - even if the property value dips below the balance of the loan. If you would like to learn more about reverse mortgages, feel free to call us at 8008057088.
Do you have a question regarding a mortgage program?