Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to benefit from their equity without selling their home. The lending institution gives you money based on your home equity amount; you get a lump sum, a monthly payment or a line of credit. Repayment is not necessary until when the borrower sells the property, moves (such as into a care facility) or dies. You or an estate representative must pay back the reverse mortgage funds, interest accrued, and other finance charges at the time your property is sold, or you no longer live in it.
The requirements of a reverse mortgage loan typically are being 62 or older, maintaining your home as your main residence, and having a small balance on your mortgage or owning your home outright.
Many homeowners who live on a fixed income and have a need for additional funds find reverse mortgages helpful for their situation. Interest rates can be fixed or adjustable while the funds are nontaxable and don't affect Social Security or Medicare benefits. Your home is never at risk of being taken away from you by the lender or put up for sale against your will if you outlive your loan term - even if the current property value dips under the loan balance. Call us at 866-300-1550 to explore your reverse mortgage options.
Do you have a question regarding a mortgage program?