With a reverse mortgage loan (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without selling their homes. Choosing between a monthly payment amount, a line of credit, or a lump sum, you can take out a loan amount determined by your home equity. Paying back your loan isn't necessary until after the borrower puts his home up for sale, moves (such as to a care facility) or dies. You or representative of your estate is required to repay the reverse mortgage loan, interest accrued, and finance fees when your home is sold, or you no longer live in it.
Most reverse mortgages are offered to borrowers at least sixty-two years of age, have a low or zero balance owed against your home and maintain the home as your main residence.
Many homeowners who are on a limited income and find themselves needing additional money find reverse mortgages helpful for their situation. Rates of interest can be fixed or adjustable and the money is nontaxable and doesn't adversely affect Social Security or Medicare benefits. The lender cannot take the property away if you outlive your loan nor can you be made to sell your residence to pay off the loan amount even if the balance is determined to exceed current property value. If you'd like to learn more about reverse mortgages, please contact us at 844-773-1401.
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