With a reverse mortgage loan (also called a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. Choosing between a monthly payment, a line of credit, or a lump sum, you can receive a loan amount determined by your home equity. The loan does not have to be repaid until the borrower sells his residence, moves away, or dies. You or representative of your estate has to repay the reverse mortgage amount, interest accrued, and other finance charges at the time your property is sold, or you can no longer use it as your primary residence.
The conditions of a reverse mortgage usually include being sixty-two or older, maintaining your home as your main residence, and holding a small remaining mortgage balance or having paid it off.
Reverse mortgages are appropriate for homeowners who are retired or no longer bringing home a paycheck and must add to their income. Interest rates may be fixed or adjustable while the funds are nontaxable and do not affect Social Security or Medicare benefits. The home is never in danger of being taken away from you by the lending institution or sold without your consent if you live past your loan term - even if the property value creeps below the balance of the loan. Contact us at 703.255-5810 to discuss your reverse mortgage options.
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