In a reverse mortgage (also called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without having to sell their homes. Choosing between a monthly amount, a line of credit, or a one-time payment, you can receive a loan amount determined by your equity. The borrowed money doesn't have to be paid back until the homeowner sells the residence, moves out, or passes away. When your house sells or you no longer use it as your main residence, you (or your estate) are obligated to repay the lender for the cash you obtained from your reverse mortgage as well as interest among other finance charges.
Usually, reverse mortgages are available for homeowners who are at least 62 years of age, have a small or zero balance in a mortgage and maintain the home as your principal residence.
Reverse mortgages are great for retired homeowners or those who are no longer bringing home a paycheck but need to supplement their income. Social Security and Medicare benefits won't be 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 lender or put up for sale against your will if you live longer than your loan term - even if the property value dips under the loan balance. Call us at 703.255-5810 if you'd like to explore the benefits of reverse mortgages.
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