With a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without having to sell their homes. Deciding how you'd prefer to to receive your funds: by a monthly amount, a line of credit, or a lump sum, you can get a loan based on your home equity. The borrowed money doesn't have to be paid back until the borrower sells the home, moves out, or dies. You or representative of your estate must pay back the reverse mortgage funds, interest accrued, and finance charges at the time your house is sold, or you are no longer living in it.
The requirements of a reverse mortgage typically include being 62 or older, using the property as your main residence, and having a low balance on your mortgage or owning your home outright.
Homeowners who are on a fixed income and have a need for additional funds find reverse mortgages ideal for their situation. Social Security and Medicare benefits aren't affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed rates. The lending institution can't take away your residence if you outlive your loan nor can you be forced to sell your home to pay off your loan amount even when the loan balance is determined to exceed current property value. If you would like to find out more about reverse mortgages, feel free to call us at 866-300-1550.
Do you have a question regarding a mortgage program?