In a reverse mortgage loan (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 amount, a line of credit, or a lump sum, you may receive a loan amount determined by your equity. Paying back your loan is not necessary until when the homeowner sells the property, moves (such as to a care facility) or passes away. After you sell your home or is no longer used as your main residence, you (or your estate) must pay back the lending institution for the cash you received from your reverse mortgage as well as interest among other finance charges.
The requirements of a reverse mortgage loan generally include being sixty-two or older, using the house as your primary living place, and having a small remaining mortgage balance or having paid it off.
Homeowners who are on a limited income and find themselves needing additional money find reverse mortgages ideal for their circumstance. Social Security and Medicare benefits aren't affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed rates. Your residence is never in danger of being taken away by the lending institution or put up for sale without your consent if you live longer than the loan term - even if the current property value dips below the loan balance. Contact us at 941-504-1445 to explore your reverse mortgage options.
Do you have a question regarding a mortgage program?