Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to use their built-up equity without having to sell their home. Choosing between a monthly payment amount, a line of credit, or a one-time payment, you can get a loan based on your home equity. Paying back your loan isn't necessary until the homeowner puts his home up for sale, moves (such as into a care facility) or dies. You or representative of your estate is obligated to pay back the reverse mortgage funds, interest accrued, and finance fees after your house is sold, or you no longer live in it.
The conditions of a reverse mortgage generally include being sixty-two or older, using the home as your primary residence, and holding a small remaining mortgage balance or having paid it off.
Homeowners who are on a fixed income and need additional money find reverse mortgages advantageous for their situation. Interest rates may be fixed or adjustable while the funds are nontaxable and do not affect Social Security or Medicare benefits. Your residence is never in danger of being taken away by the lending institution or sold without your consent if you live longer than the loan term - even if the property value goes under the balance of the loan. Contact us at 941-504-1445 if you would like to explore the benefits of reverse mortgages.
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