Reverse mortgages (also called "home equity conversion loans") enable older homeowners to benefit from their equity without having to sell their home. Choosing between a monthly payment amount, a line of credit, or a lump sum, you may receive a loan amount determined by your equity. The loan does not have to be paid back until the borrower sells his home, moves away, or dies. You or representative of your estate has to pay back the reverse mortgage funds, interest accrued, and finance charges after your property is sold, or you can no longer use it as your primary residence.
The conditions of a reverse mortgage usually are being 62 or older, maintaining the property as your main living place, and holding a low balance on your mortgage or having paid it off.
Reverse mortgages are advantageous for retired homeowners or those who are no longer bringing home a paycheck but have a need to supplement their fixed income. Social Security and Medicare benefits aren't affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed interest rates. The lender cannot take away your house if you live past the loan term nor will you be made to sell your residence to pay off the loan even when the loan balance grows to exceed current property value. Call us at 703.255-5810 to look into your reverse mortgage options.
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