Reverse mortgages (also called "home equity conversion loans") enable older homeowners to benefit from their built-up home equity without selling their home. Choosing between a monthly payment amount, a line of credit, or a one-time payment, you may receive a loan based on your equity. The borrowed money doesn't have to be repaid until the homeowner sells his residence, moves away, or passes away. At the time you sell your home or you no longer use it as your main residence, you (or your estate) have to pay back the lending institution for the cash you received from your reverse mortgage as well as interest among other fees.
Generally, reverse mortgages are offered to borrowers at least 62 years old, have a small or zero balance in a mortgage and maintain the property as your main residence.
Many homeowners who are on a limited income and need additional funds find reverse mortgages helpful for their circumstance. Social Security and Medicare benefits aren't affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. Your house can never be at risk of being taken away by the lending institution or put up for sale against your will if you live longer than your loan term - even if the current property value goes under the balance of the loan. Call us at 954.920.9799 if you want to explore the advantages of reverse mortgages.
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