Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to use their home equity without selling their home. The lender pays out money based on the equity you've accrued in your home; you receive a lump sum, a monthly payment or a line of credit. Repayment is not required until the time the borrower sells the property, moves (such as into a retirement community) or passes away. When you sell your home or you no longer use it as your primary residence, you (or your estate) are obligated to repay the lending institution for the money you received from the reverse mortgage plus interest and other fees.
The requirements of a reverse mortgage generally are being sixty-two or older, using the home as your primary living place, and having a small remaining mortgage balance or having paid it off.
Many homeowners who are on a fixed income and need additional funds find reverse mortgages advantageous for their circumstance. Interest rates may be fixed or adjustable while the funds are nontaxable and don't adversely affect Medicare or Social Security benefits. Your lending institution isn't able to take the property away if you outlive your loan nor will you be forced to sell your home to repay your loan amount even if the balance grows to exceed current property value. Call us at 7186399500 if you'd like to explore the advantages of reverse mortgages.
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