In a reverse mortgage loan (also called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. Deciding how you prefer to to receive your funds: by a monthly payment amount, a line of credit, or a one-time payment, you may get a loan amount determined by your home equity. The loan does not have to be repaid until the borrower sells his home, moves out, or passes away. After your home has been sold or you no longer use it as your primary residence, you (or your estate) must pay back the lending institution for the cash you obtained from the reverse mortgage plus interest and other finance charges.
The requirements of a reverse mortgage loan typically include being 62 or older, using the house as your main living place, and having a low balance on your mortgage or having paid it off.
Many homeowners who are on a limited income and need additional money find reverse mortgages advantageous for their situation. Interest rates may be fixed or adjustable while the funds are nontaxable and do not affect Medicare or Social Security benefits. The house is never in danger of being taken away by the lender or put up for sale without your consent if you live past your loan term - even if the current property value creeps below the balance of the loan. Contact us at 866-300-1550 to discuss your reverse mortgage options.
Do you have a question regarding a mortgage program?