Reverse mortgages (also called "home equity conversion loans") give older homeowners the ability to benefit from their home equity without the necessity of selling their home. The lender gives you money determined by your home equity amount; you receive a lump sum, a monthly payment or a line of credit. Paying back your loan is not required until the borrower puts his home up for sale, moves (such as into a retirement community) or passes away. You or your estate representative must pay back the reverse mortgage loan, interest accrued, and finance charges at the time your home is sold, or you are no longer living in it.
The conditions of a reverse mortgage loan usually are being 62 or older, maintaining the house as your primary residence, and having a small remaining mortgage balance or owning your home outright.
Reverse mortgages can be great for retired homeowners or those who are no longer working and have a need to add to their limited income. Social Security and Medicare benefits will not be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed interest rates. The lender isn't able to take the property away if you live past the loan term nor will you be obligated to sell your residence to repay the loan amount even if the loan balance grows to exceed current property value. Call us at 9722039033 if you'd like to explore the benefits of reverse mortgages.