Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to tap into built-up equity without selling their home. The lending institution gives you funds based on the equity you've accrued in your home; you receive a one-time amount, a payment each month or a line of credit. The borrowed money doesn't have to be repaid until the borrower sells the residence, moves out, or dies. At the time your home has been sold or you no longer use it as your primary residence, you (or your estate) are obligated to pay back the lender for the cash you got from your reverse mortgage in addition to interest and other fees.
The requirements of a reverse mortgage generally are being 62 or older, maintaining your property as your main living place, and holding a low remaining mortgage balance or owning your home outright.
Reverse mortgages are great for retired homeowners or those who are no longer bringing home a paycheck and need to supplement their fixed income. Social Security and Medicare benefits will not be affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed interest rates. The house can never be in danger of being taken away from you by the lending institution or put up for sale without your consent if you live past your loan term - even if the current property value goes under the loan balance. Contact us at 954.920.9799 to explore your reverse mortgage options.
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