With 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 having to sell their homes. Choosing between a monthly payment amount, a line of credit, or a lump sum, you may receive a loan based on your home equity. Paying back your loan is not required until the borrower sells the home, moves (such as into a retirement community) or dies. After your house sells or is no longer used as your main residence, you (or your estate) are required to repay the lender for the cash you obtained from your reverse mortgage in addition to interest among other finance charges.
Usually, reverse mortgages require you be at least 62 years old, have a low or zero balance owed against your home and use the home as your main living place.
Reverse mortgages can be ideal for retired homeowners or those who are no longer bringing home a paycheck but have a need to add to their limited income. Social Security and Medicare benefits can't be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. The lending institution cannot take away your home if you live past the loan term nor may you be made to sell your residence to pay off the loan amount even if the loan balance grows to exceed property value. If you would like to learn more about reverse mortgages, feel free to call us at 9727982110.