Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to benefit from their built-up home equity without having to sell their home. The lender gives you money determined by your home equity amount; you receive a one-time amount, a monthly payment or a line of credit. The loan doesn't have to be repaid until the homeowner sells the home, moves away, or dies. At the time your home sells or you no longer use it as your primary residence, you (or your estate) are required to pay back the lender for the funds you received from the reverse mortgage as well as interest and other finance charges.
Most reverse mortgages require you be at least 62 years old, have a low or zero balance owed against the home and maintain the home as your principal living place.
Homeowners who live on a limited income and have a need for additional money find reverse mortgages advantageous for their situation. Social Security and Medicare benefits are not affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed rates. Your residence is never at risk of being taken away from you by the lending institution or sold without your consent if you outlive the loan term - even if the current property value dips under the balance of the loan. Contact us at 703.255-5810 if you want to explore the benefits of reverse mortgages.
Do you have a question regarding a mortgage program?