In a reverse mortgage loan (also referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without having to sell their homes. The lender pays you funds determined by your home equity amount; you get a lump sum, a monthly payment or a line of credit. Repayment isn't required until the borrower sells the home, moves (such as to a retirement community) or dies. You or representative of your estate has to repay the reverse mortgage loan, interest accrued, and finance fees after your home is sold, or you can no longer call it your primary residence.
Most reverse mortgages require youto be at least sixty-two years of age, have a low or zero balance owed against your home and maintain the house as your principal living place.
Many homeowners who are on a limited income and find themselves needing additional funds find reverse mortgages advantageous for their circumstance. Interest rates can be fixed or adjustable while the funds are nontaxable and do not adversely affect Social Security or Medicare benefits. Your house will never be at risk of being taken away by the lender or sold against your will if you live longer than your loan term - even if the current property value creeps below the loan balance. If you would like to find out more about reverse mortgages, please call us at 866-300-1550.
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