With a reverse mortgage (sometimes called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without having to sell their homes. The lending institution gives you money determined by the equity you've accrued in your home; you get a one-time amount, a monthly payment or a line of credit. The loan doesn't have to be paid back until the borrower sells the home, moves away, or passes away. After your home sells or is no longer used as your primary residence, you (or your estate) are obligated to repay the lending institution for the cash you got from the reverse mortgage in addition to interest among other finance charges.
The conditions of a reverse mortgage loan usually are being 62 or older, using the home as your main living place, and holding a low remaining mortgage balance or having paid it off.
Reverse mortgages can be ideal for retired homeowners or those who are no longer bringing home a paycheck and need to supplement their income. Interest rates can be fixed or adjustable and the funds are nontaxable and don't interfere with Social Security or Medicare benefits. The lending institution will not take the property away if you live past the loan term nor can you be forced to sell your home to pay off the loan even if the balance grows to exceed current property value. Call us at 941-504-1445 to look into your reverse mortgage options.
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