Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to use their built-up home equity without selling their home. Deciding how you would like to be paid: by a monthly payment, a line of credit, or a one-time payment, you can take out a loan based on your home equity. The borrowed money does not have to be paid back until the borrower sells the home, moves out, or dies. You or representative of your estate has to pay back the reverse mortgage loan, interest accrued, and finance charges at the time your home is sold, or you are no longer living in it.
Most reverse mortgages are appropriate for borrowers who are at least 62 years of age, have a small or zero balance in a mortgage and use the property as your principal living place.
Many homeowners who live on a fixed income and find themselves needing additional funds find reverse mortgages advantageous for their situation. Interest rates can be fixed or adjustable while the funds are nontaxable and don't affect Medicare or Social Security benefits. Your lending institution will not take away your property if you outlive your loan nor will you be forced to sell your residence to repay the loan even if the loan balance grows to exceed current property value. Contact us at 954.920.9799 to look into your reverse mortgage options.
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