With a reverse mortgage (sometimes referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without selling their homes. Deciding how you would like to to receive your money: by a monthly payment, a line of credit, or a one-time payment, you may take out a loan based on your equity. The borrowed money doesn't have to be repaid until the borrower sells his home, moves away, or passes away. After you sell your home or you no longer use it as your primary residence, you (or your estate) must pay back the lending institution for the money you got from your reverse mortgage as well as interest and other fees.
The conditions of a reverse mortgage often are being sixty-two or older, maintaining the home as your main residence, and having a small balance on your mortgage or having paid it off.
Reverse mortgages can be appropriate for homeowners who are retired or no longer working but have a need to add to their fixed income. Social Security and Medicare benefits can't be affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed rates. The house can never be at risk of being taken away from you by the lender or put up for sale without your consent if you live longer than your loan term - even if the current property value goes under the loan balance. Contact us at 941-504-1445 if you want to explore the benefits of reverse mortgages.
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