In a reverse mortgage (sometimes called a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. The lending institution gives you money determined by your home equity amount; you receive a lump sum, a payment each month or a line of credit. Repayment isn't required until when the homeowner sells the home, moves (such as into a retirement community) or passes away. You or representative of your estate is required to repay the reverse mortgage funds, interest , and finance charges when your property is sold, or you are no longer living in it.
Usually, reverse mortgages require youto be at least sixty-two years old, have a low or zero balance in a mortgage and use the property as your principal living place.
Reverse mortgages are advantageous for retired homeowners or those who are no longer working but must supplement their income. Interest rates can be fixed or adjustable and the money is nontaxable and does not adversely affect Medicare or Social Security benefits. Your lending institution isn't able to take away your home if you outlive your loan nor will you be made to sell your residence to pay off the loan even if the balance is determined to exceed current property value. Call us at 703.255-5810 to discuss your reverse mortgage options.
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