Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to benefit from their built-up equity without having to sell their home. Choosing between a monthly payment, a line of credit, or a one-time payment, you may receive a loan amount determined by your home equity. The borrowed money does not have to be repaid until the borrower sells his home, moves away, or dies. After you sell your home or is no longer used as your primary residence, you (or your estate) have to pay back the lending institution for the money you obtained from your reverse mortgage as well as interest and other fees.
Usually, reverse mortgages are appropriate for homeowners at least sixty-two years old, have a low or zero balance owed against the home and maintain the home as your principal living place.
Many homeowners who live on a fixed income and have a need for additional money find reverse mortgages advantageous for their situation. Social Security and Medicare benefits can not be affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed rates. Your residence is never in danger of being taken away from you by the lending institution or sold against your will if you outlive your loan term - even if the current property value dips below the loan balance. If you'd like to learn more about reverse mortgages, please contact us at 9722039033.