In a reverse mortgage loan (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without having to sell their homes. The lender pays you funds determined by the equity you've built-up in your home; you receive a lump sum, a payment each month or a line of credit. Paying back your loan is not required until the time the borrower sells the property, moves (such as into a care facility) or dies. After you sell your home or you no longer use it as your main residence, you (or your estate) have to pay back the lending institution for the funds you obtained from the reverse mortgage plus interest among other fees.
The conditions of a reverse mortgage typically are being 62 or older, using the home as your main residence, and holding a low balance on your mortgage or owning your home outright.
Reverse mortgages can be helpful for homeowners who are retired or no longer working and must add to their limited income. Social Security and Medicare benefits can't be affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed interest rates. Your lending institution will not take away your residence if you outlive your loan nor may you be obligated to sell your residence to pay off your loan amount even when the balance grows to exceed current property value. Contact us at 866-300-1550 to look into your reverse mortgage options.
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