Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to tap into built-up home equity without selling their home. The lending institution pays you money determined by your home equity amount; you get a lump sum, a monthly payment or a line of credit. The borrowed money does not have to be paid back until the homeowner sells the residence, moves away, or passes away. You or representative of your estate must repay the reverse mortgage loan, interest , and other finance fees when your house is sold, or you are no longer living in it.
Typically, reverse mortgages are available for borrowers who are at least 62 years of age, have a low or zero balance owed against the home and maintain the home as your main living place.
Reverse mortgages are helpful for retired homeowners or those who are no longer bringing home a paycheck and have a need to add to their limited income. Rates of interest can be fixed or adjustable and the money is nontaxable and does not interfere with Medicare or Social Security benefits. Your lending institution can't take the property away if you live past the loan term nor may you be required to sell your home to repay your loan amount even if the balance is determined to exceed property value. Contact us at 703.255-5810 if you want to explore the benefits of reverse mortgages.
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