In a reverse mortgage loan (also referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without having to sell their homes. Deciding how you prefer to to receive your funds: by a monthly payment, a line of credit, or a one-time payment, you can take out a loan amount determined by your home equity. Repayment is not necessary until after the borrower puts his home up for sale, moves (such as to a retirement community) or passes away. You or an estate representative has to pay back the reverse mortgage amount, interest , and finance fees at the time your property is sold, or you are no longer living in it.
The conditions of a reverse mortgage often include being sixty-two or older, using the home as your main living place, and having a small balance on your mortgage or owning your home outright.
Many homeowners who live on a fixed income and find themselves needing additional money find reverse mortgages helpful for their circumstance. Social Security and Medicare benefits aren't affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed interest rates. The house is never in danger of being taken away from you by the lending institution or sold without your consent if you live longer than your loan term - even if the current property value goes below the balance of the loan. If you would like to find out more about reverse mortgages, please call us at 703.255-5810.
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