With a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without having to sell their homes. The lender gives you money determined by the equity you've accrued in your home; you receive a lump sum, a monthly payment or a line of credit. The borrowed money doesn't have to be paid back until the borrower sells his home, moves out, or dies. You or representative of your estate must repay the reverse mortgage loan, interest accrued, and other finance fees after your house is sold, or you are no longer living in it.
Usually, reverse mortgages require youto be at least sixty-two years of age, have a low or zero balance in a mortgage and maintain the home as your principal living place.
Reverse mortgages can be ideal for homeowners who are retired or no longer bringing home a paycheck but must supplement their fixed income. Interest rates may be fixed or adjustable and the funds are nontaxable and do not adversely affect Medicare or Social Security benefits. Your lending institution will not take away your home if you live past the loan term nor will you be made to sell your home to pay off the loan even if the balance is determined to exceed current property value. Contact us at 954.920.9799 to discuss your reverse mortgage options.
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