Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to benefit from their equity without the necessity of selling their home. Deciding how you prefer to to receive your money: by a monthly amount, a line of credit, or a one-time payment, you may take out a loan amount determined by your home equity. Paying back your loan is not required until the time the homeowner puts his home up for sale, moves (such as into a retirement community) or passes away. You or your estate representative is required to repay the reverse mortgage amount, interest accrued, and finance charges at the time your house is sold, or you are no longer living in it.
Typically, reverse mortgages require youto be at least 62 years of age, have a small or zero balance owed against the home and maintain the home as your principal residence.
Reverse mortgages can be appropriate for retired homeowners or those who are no longer bringing home a paycheck and must supplement their fixed income. Rates of interest may be fixed or adjustable and the money is nontaxable and doesn't interfere with Medicare or Social Security benefits. The home will never be in danger of being taken away from you by the lending institution or sold without your consent if you live past the loan term - even if the property value dips under the loan balance. If you would like to learn more about reverse mortgages, feel free to call us at 941-504-1445.
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