In a reverse mortgage (sometimes 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, a line of credit, or a lump sum, you can receive a loan based on your home equity. The loan does not have to be repaid until the borrower sells his residence, moves away, or dies. When you sell your property or you no longer use it as your primary residence, you (or your estate) must pay back the lending institution for the funds you got from your reverse mortgage in addition to interest and other finance charges.
The requirements of a reverse mortgage loan usually include being sixty-two or older, maintaining your property as your main living place, and holding a low remaining mortgage balance or having paid it off.
Many homeowners who live on a fixed income and have a need for additional funds find reverse mortgages helpful for their circumstance. Interest rates can be fixed or adjustable and the funds are nontaxable and do not adversely affect Social Security or Medicare benefits. Your lender isn't able to take away your home if you outlive your loan nor will you be obligated to sell your residence to repay the loan even if the loan balance grows to exceed current property value. Call us at 941-504-1445 if you want to explore the benefits of reverse mortgages.
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