In a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. Deciding how you'd prefer to be paid: by a monthly amount, a line of credit, or a one-time payment, you can get a loan based on your home equity. Repayment isn't necessary until the time the borrower puts his home up for sale, moves (such as into a retirement community) or dies. When your home has been sold or you no longer use it as your primary residence, you (or your estate) are obligated to repay the lending institution for the cash you got from your reverse mortgage plus interest and other finance charges.
The conditions of a reverse mortgage loan generally include being 62 or older, using the house as your main residence, and holding a low remaining mortgage balance or owning your home outright.
Many homeowners who live on a fixed income and have a need for additional money find reverse mortgages advantageous for their situation. Social Security and Medicare benefits won't be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. Your home will never be in danger of being taken away by the lending institution or sold against your will if you live longer than the loan term - even if the current property value dips under the balance of the loan. Contact us at 972.798.2110 to look into your reverse mortgage options.