In a reverse mortgage (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 pays out money based on the equity you've accrued in your home; you receive a one-time amount, a monthly payment or a line of credit. Paying back your loan isn't necessary until when the homeowner puts his home up for sale, moves (such as into a retirement community) or dies. At the time you sell your home or is no longer used as your main residence, you (or your estate) must pay back the lending institution for the cash you obtained from your reverse mortgage as well as interest among other fees.
The conditions of a reverse mortgage generally are being sixty-two or older, using the home as your main living place, and holding a low balance on your mortgage or owning your home outright.
Many homeowners who are on a fixed income and find themselves needing additional money find reverse mortgages ideal for their situation. Social Security and Medicare benefits are not affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed rates. The lending institution will not take the property away if you outlive your loan nor may you be forced to sell your home to pay off your loan even if the loan balance grows to exceed current property value. Call us at 9727982110 if you'd like to explore the advantages of reverse mortgages.