In a reverse mortgage loan (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 out funds based on the equity you've accrued in your home; you get a lump sum, a payment every month or a line of credit. Paying back your loan isn't required until the homeowner sells the home, moves (such as into a retirement community) or dies. You or an estate representative has to pay back the reverse mortgage amount, interest , and finance charges when your home is sold, or you can no longer use it as your primary residence.
Usually, reverse mortgages are offered to borrowers at least sixty-two years of age, have a small or zero balance in a mortgage and use the house as your main living place.
Reverse mortgages can be appropriate for retired homeowners or those who are no longer working but need to add to their limited income. Interest rates can be fixed or adjustable while the funds are nontaxable and don't affect Medicare or Social Security benefits. Your lender can't take away your property if you outlive your loan nor may you be obligated to sell your home to repay the loan even if the loan balance grows to exceed current property value. Call us at 866-300-1550 to explore your reverse mortgage options.
Do you have a question regarding a mortgage program?