In a reverse mortgage (also referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without having to sell their homes. The lender gives you money based on the equity you've accrued in your home; you get a lump sum, a monthly payment or a line of credit. Paying back your loan is not necessary until when the homeowner puts his home up for sale, moves (such as into a care facility) or dies. After your home has been sold or is no longer used as your primary residence, you (or your estate) must pay back the lending institution for the money you obtained from the reverse mortgage as well as interest among other finance charges.
The requirements of a reverse mortgage typically are being 62 or older, maintaining your house as your primary residence, and having a low balance on your mortgage or having paid it off.
Reverse mortgages are appropriate for retired homeowners or those who are no longer bringing home a paycheck but must add to their fixed income. Interest rates can be fixed or adjustable and the money is nontaxable and does not affect Social Security or Medicare benefits. Your lender cannot take away your house if you outlive your loan nor may you be required to sell your home to pay off the loan amount even if the balance is determined to exceed property value. Call us at 9722039033 if you would like to explore the advantages of reverse mortgages.