With a reverse mortgage (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 like to be paid: by a monthly amount, a line of credit, or a one-time payment, you can take out a loan based on your equity. Repayment isn't necessary until the time the homeowner sells the property, moves (such as to a care facility) or passes away. You or representative of your estate must repay the reverse mortgage amount, interest accrued, and finance fees at the time your house is sold, or you are no longer living in it.
Most reverse mortgages are offered to borrowers who are at least 62 years of age, have a small or zero balance in a mortgage and use the home as your main residence.
Homeowners who are on a limited income and find themselves needing additional money find reverse mortgages helpful for their situation. Social Security and Medicare benefits won't be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed rates. The house is never in danger of being taken away from you by the lender or sold without your consent if you live longer than the loan term - even if the property value goes below the loan balance. Call us at (727) 478-2797 if you want to explore the advantages of reverse mortgages.
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