Reverse mortgages (also called "home equity conversion loans") enable older homeowners to benefit from their built-up home equity without selling their home. Choosing between a monthly payment, a line of credit, or a one-time payment, you may receive a loan amount determined by your equity. Repayment is not required until the time the borrower puts his home up for sale, moves (such as into a retirement community) or passes away. At the time you sell your home or is no longer used as your primary residence, you (or your estate) have to pay back the lender for the cash you received from your reverse mortgage as well as interest among other finance charges.
The conditions of a reverse mortgage generally are being sixty-two or older, using the house as your primary living place, and holding a small remaining mortgage balance or having paid it off.
Reverse mortgages can be appropriate for homeowners who are retired or no longer working and have a need to supplement their fixed income. Rates of interest can be fixed or adjustable and the funds are nontaxable and do not affect Medicare or Social Security benefits. Your lending institution isn't able to take the property away if you outlive your loan nor will you be made to sell your home to pay off the loan even if the balance is determined to exceed property value. Contact us at 703.255-5810 if you'd like to explore the benefits of reverse mortgages.
Do you have a question regarding a mortgage program?