In a reverse mortgage (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without having to sell their homes. The lending institution gives you money determined by the equity you've accrued in your home; you receive a lump sum, a monthly payment or a line of credit. The loan does not have to be paid back until the homeowner sells the home, moves out, or dies. You or your estate representative must pay back the reverse mortgage funds, interest , and finance fees when your home is sold, or you are no longer living in it.
The conditions of a reverse mortgage usually include being sixty-two or older, using the property as your main residence, and holding a low remaining mortgage balance or owning your home outright.
Homeowners who are on a fixed income and have a need for additional funds find reverse mortgages advantageous for their situation. Social Security and Medicare benefits can't be affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed rates. Your home can never be in danger of being taken away from you by the lending institution or put up for sale without your consent if you live longer than the loan term - even if the property value creeps under the loan balance. Call us at 941-504-1445 to look into your reverse mortgage options.
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