In a reverse mortgage loan (also referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. The lending institution pays out funds determined by your home equity amount; you get a lump sum, a monthly payment or a line of credit. Paying back your loan is not required until when the homeowner puts his home up for sale, moves (such as to a retirement community) or dies. At the time your house has been sold or you no longer use it as your primary residence, you (or your estate) have to repay the lending institution for the cash you obtained from your reverse mortgage as well as interest and other finance charges.
Usually, reverse mortgages require youto be at least sixty-two years of age, have a low or zero balance owed against your home and use the home as your principal residence.
Many homeowners who live on a fixed income and have a need for additional funds find reverse mortgages advantageous for their situation. Social Security and Medicare benefits will not be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. Your house can never be in danger of being taken away by the lending institution or sold against your will if you live past the loan term - even if the current property value creeps under the loan balance. Call us at 954.920.9799 if you'd like to explore the benefits of reverse mortgages.
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