With a reverse mortgage loan (also referred to as a 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 lending institution gives you funds based on your home equity amount; you get a one-time amount, a monthly payment or a line of credit. The borrowed money doesn't have to be paid back until the borrower sells the home, moves away, or passes away. You or representative of your estate is obligated to pay back the reverse mortgage funds, interest accrued, and other finance fees when your property is sold, or you no longer live in it.
The requirements of a reverse mortgage generally include being 62 or older, maintaining the home as your primary residence, and holding a low remaining mortgage balance or owning your home outright.
Homeowners who are on a fixed income and have a need for additional funds find reverse mortgages advantageous for their circumstance. Interest rates may be fixed or adjustable and the funds are nontaxable and don't affect Medicare or Social Security benefits. The residence is never at risk of being taken away from you by the lending institution or sold without your consent if you outlive your loan term - even if the current property value creeps under the loan balance. Call us at 954.920.9799 to explore your reverse mortgage options.
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