With a reverse mortgage (also 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. The lender pays you funds determined by your home equity amount; 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 homeowner sells the home, moves out, or dies. You or representative of your estate has to repay the reverse mortgage funds, interest , and other finance charges after your house is sold, or you can no longer use it as your primary residence.
The conditions of a reverse mortgage generally are being sixty-two or older, maintaining the house as your main living place, and having a small balance on your mortgage or having paid it off.
Reverse mortgages are helpful for retired homeowners or those who are no longer bringing home a paycheck and need to add to their income. Interest rates may be fixed or adjustable and the money is nontaxable and doesn't adversely affect Social Security or Medicare benefits. Your house is never at risk of being taken away from you by the lending institution or put up for sale without your consent if you outlive your loan term - even if the current property value creeps under the loan balance. If you'd like to find out more about reverse mortgages, feel free to contact us at (561) 392-0040.
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