With a reverse mortgage (also called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without having to sell their homes. The lender gives you money determined by your home equity amount; you receive a lump sum, a payment every month or a line of credit. The loan does not have to be paid back until the homeowner sells his home, moves away, or dies. After your home sells or is no longer used as your primary residence, you (or your estate) are obligated to repay the lending institution for the funds you received from the reverse mortgage in addition to interest among other finance charges.
The conditions of a reverse mortgage generally are being 62 or older, maintaining the home as your primary living place, and holding a small remaining mortgage balance or having paid it off.
Reverse mortgages are ideal for retired homeowners or those who are no longer bringing home a paycheck and need to add to their limited income. Rates of interest can be fixed or adjustable and the funds are nontaxable and don't affect Medicare or Social Security benefits. The house will never be at risk of being taken away from you by the lender or put up for sale without your consent if you live longer than your loan term - even if the property value creeps below the balance of the loan. Contact us at 703.255-5810 to look into your reverse mortgage options.
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