With a reverse mortgage (sometimes called 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 amount, a line of credit, or a lump sum, you can take out a loan amount determined by your equity. The loan doesn't have to be paid back until the borrower sells the home, moves away, or dies. At the time your home sells or is no longer used as your main residence, you (or your estate) have to pay back the lending institution for the funds you obtained from your reverse mortgage as well as interest among other fees.
Most reverse mortgages require youto be at least sixty-two years of age, have a low or zero balance in a mortgage and maintain the house as your main living place.
Reverse mortgages are helpful for homeowners who are retired or no longer bringing home a paycheck and need to supplement their limited income. Social Security and Medicare benefits can not be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. The home can never be at risk of being taken away from you by the lender or sold against your will if you outlive the loan term - even if the current property value dips under the loan balance. If you would like to learn more about reverse mortgages, feel free to contact us at 941-504-1445.
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