Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to use their built-up home equity without having to sell their home. The lending institution gives you funds based on the equity you've built-up in your home; you receive a lump sum, a monthly payment or a line of credit. The borrowed money does not have to be repaid until the homeowner sells his home, moves out, or passes away. At the time your house has been sold or you no longer use it as your primary residence, you (or your estate) must repay the lender for the money you got from the reverse mortgage plus interest among other fees.
The conditions of a reverse mortgage loan normally are being sixty-two or older, using the property as your primary living place, and holding a small remaining mortgage balance or having paid it off.
Many homeowners who live on a limited income and need additional funds find reverse mortgages ideal for their circumstance. Social Security and Medicare benefits can not be affected; and the money is nontaxable. Reverse Mortgages may 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 obligated to sell your home to repay the loan even when the balance is determined to exceed current property value. Call us at 7079640708 to discuss your reverse mortgage options.