In a reverse mortgage loan (also referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. The lending institution gives you funds determined by the equity you've accrued in your home; you receive a one-time amount, a payment every month or a line of credit. The borrowed money does not have to be repaid until the borrower sells the home, moves out, or dies. You or an estate representative is required to repay the reverse mortgage amount, interest , and finance charges at the time your house is sold, or you can no longer call it your primary residence.
The requirements of a reverse mortgage generally are being sixty-two or older, maintaining the home as your main residence, and having a small remaining mortgage balance or having paid it off.
Reverse mortgages are ideal for retired homeowners or those who are no longer working and have a need to add to their fixed income. Rates of interest can be fixed or adjustable while the money is nontaxable and doesn't affect Medicare or Social Security benefits. The lending institution is not able to take away your residence if you live past the loan term nor may you be forced to sell your home to repay the loan even when the loan balance grows to exceed property value. Contact us at 7186399500 if you would like to explore the benefits of reverse mortgages.
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