Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to benefit from their equity without selling their home. The lender gives you money based on the equity you've accrued in your home; you get a lump sum, a monthly payment or a line of credit. The borrowed money doesn't have to be repaid until the homeowner sells his residence, moves out, or passes away. When you sell your property or is no longer used as your main residence, you (or your estate) are required to repay the lending institution for the money you obtained from your reverse mortgage as well as interest among other finance charges.
Most reverse mortgages require youto be at least 62 years old, have a low or zero balance owed against your home and use the home as your principal residence.
Many homeowners who live on a fixed income and find themselves needing additional funds find reverse mortgages ideal for their situation. Interest rates can be fixed or adjustable while the funds are nontaxable and do not adversely affect Medicare or Social Security benefits. The residence is never at risk of being taken away from you by the lender or sold without your consent if you live longer than your loan term - even if the property value goes under the balance of the loan. Call us at 9727982110 if you would like to explore the advantages of reverse mortgages.