With a reverse mortgage loan (also called a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. Choosing between a monthly payment amount, a line of credit, or a one-time payment, you can take out a loan based on your equity. Repayment is not necessary until the borrower sells the property, moves (such as into a retirement community) or dies. When your home sells or you no longer use it as your primary residence, you (or your estate) must repay the lending institution for the money you obtained from your reverse mortgage in addition to interest among other finance charges.
Usually, reverse mortgages are available for borrowers who are at least sixty-two years of age, have a small or zero balance in a mortgage and maintain the property as your main residence.
Reverse mortgages are ideal for homeowners who are retired or no longer bringing home a paycheck and have a need to supplement their income. Interest rates may be fixed or adjustable and the money is nontaxable and does not interfere with Medicare or Social Security benefits. Your lending institution isn't able to take away your home if you live past the loan term nor will you be required to sell your home to pay off your loan amount even when the balance grows to exceed property value. Call us at 941-504-1445 if you'd like to explore the advantages of reverse mortgages.
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