Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to use their built-up equity without the necessity of selling their home. Choosing between a monthly payment, 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 homeowner puts his home up for sale, moves (such as to a care facility) or passes away. You or representative of your estate has to pay back the reverse mortgage amount, interest accrued, and finance charges at the time your property is sold, or you are no longer living in it.
Typically, reverse mortgages require youto be at least sixty-two years old, have a low or zero balance in a mortgage and maintain the property as your principal residence.
Homeowners who are on a limited income and have a need for additional money find reverse mortgages helpful for their circumstance. Social Security and Medicare benefits will not be affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed interest rates. The lender will not take away your property if you outlive your loan nor will you be made to sell your home to pay off your loan even when the balance is determined to exceed property value. Contact us at 941-504-1445 if you'd like to explore the advantages of reverse mortgages.
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