Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to tap into equity without having to sell their home. The lending institution pays out money based on the equity you've built-up in your home; you get a one-time amount, a payment each month or a line of credit. Paying back your loan isn't required until the homeowner sells the property, moves (such as into a care facility) or passes away. You or representative of your estate must pay back the reverse mortgage amount, interest , and finance fees when your property is sold, or you can no longer use it as your primary residence.
Usually, reverse mortgages are offered to borrowers at least sixty-two years of age, have a low or zero balance in a mortgage and maintain the property as your principal living place.
Homeowners who live on a limited income and need additional funds find reverse mortgages helpful for their circumstance. Social Security and Medicare benefits can not be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed interest rates. Your residence will never be in danger of being taken away by the lender or put up for sale against your will if you outlive your loan term - even if the current property value dips below the balance of the loan. If you would like to find out more about reverse mortgages, feel free to contact us at 7032555810.
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