With a reverse mortgage (also called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. The lending institution pays you money determined by your home equity amount; you get a lump sum, a monthly payment or a line of credit. Repayment isn't necessary until when the borrower sells the property, moves (such as into a retirement community) or passes away. You or representative of your estate is required to pay back the reverse mortgage amount, interest , and other finance fees at the time your home is sold, or you can no longer call it your primary residence.
The requirements of a reverse mortgage usually are being 62 or older, using the house as your main living place, and holding a low balance on your mortgage or owning your home outright.
Homeowners who are on a fixed income and find themselves needing additional money find reverse mortgages ideal for their situation. Social Security and Medicare benefits can not be affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed interest rates. The lending institution will not take the property away if you live past the loan term nor can you be forced to sell your home to pay off the loan even when the loan balance grows to exceed property value. Call us at 9722039033 if you would like to explore the benefits of reverse mortgages.