Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to use their home equity without selling their home. Choosing between a monthly payment, a line of credit, or a one-time payment, you can get a loan based on your equity. Paying back your loan isn't necessary until the time the borrower sells the home, moves (such as to a care facility) or dies. When your house has been sold or is no longer used as your main residence, you (or your estate) are required to pay back the lending institution for the funds you received from the reverse mortgage plus interest and other fees.
Most 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 house as your principal residence.
Reverse mortgages can be helpful for homeowners who are retired or no longer bringing home a paycheck but must add to their fixed income. Rates of interest may be fixed or adjustable while the funds are nontaxable and do not interfere with Social Security or Medicare benefits. Your residence is never in danger of being taken away by the lender or sold against your will if you live longer than your loan term - even if the property value goes below the balance of the loan. Contact us at 941-504-1445 if you'd like to explore the advantages of reverse mortgages.
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