In a reverse mortgage loan (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. Deciding how you would prefer to be paid: by a monthly payment amount, a line of credit, or a one-time payment, you can take out a loan amount determined by your equity. The borrowed money doesn't have to be repaid until the borrower sells the residence, moves away, or passes away. You or your estate representative is required to repay the reverse mortgage amount, interest accrued, and finance charges at the time your home is sold, or you no longer live in it.
Usually, reverse mortgages are offered to homeowners at least 62 years old, have a small or zero balance owed against the home and maintain the property as your main living place.
Homeowners who are on a fixed income and have a need for additional funds find reverse mortgages helpful for their situation. Social Security and Medicare benefits can not be affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed rates. Your lending institution can't take away your property if you live past the loan term nor will you be forced to sell your residence to pay off your loan amount even when the loan balance is determined to exceed current property value. Call us at 954.920.9799 if you'd like to explore the benefits of reverse mortgages.
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