Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to use their home equity without having to sell their home. Deciding how you'd prefer to be paid: by a monthly payment amount, a line of credit, or a one-time payment, you may receive a loan amount determined by your equity. Repayment is not required until when the borrower puts his home up for sale, moves (such as into a care facility) or dies. When your home sells or you no longer use it as your primary residence, you (or your estate) are obligated to pay back the lending institution for the cash you received from your reverse mortgage plus interest and other finance charges.
The requirements of a reverse mortgage typically are being 62 or older, maintaining the property as your primary living place, and having a small remaining mortgage balance or having paid it off.
Reverse mortgages can be appropriate for homeowners who are retired or no longer bringing home a paycheck and have a need to add to their limited income. Rates of interest can be fixed or adjustable and the funds are nontaxable and don't adversely affect Social Security or Medicare benefits. Your house is never in danger of being taken away from you by the lending institution or put up for sale without your consent if you live longer than the loan term - even if the current property value dips under the loan balance. Call us at (727) 478-2797 to explore your reverse mortgage options.
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