Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to tap into built-up equity without selling their home. The lender gives you funds based on the equity you've accrued in your home; you get a one-time amount, a payment every month or a line of credit. The borrowed money does not have to be paid back until the borrower sells his home, moves away, or dies. You or your estate representative is required to repay the reverse mortgage loan, interest , and finance fees at the time your house is sold, or you can no longer call it your primary residence.
The conditions of a reverse mortgage normally are being 62 or older, maintaining your house as your main residence, and holding a small remaining mortgage balance or having paid it off.
Homeowners who live on a fixed income and have a need for additional funds find reverse mortgages ideal for their situation. Social Security and Medicare benefits can't be affected; and the money is nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. The house is never in danger of being taken away by the lending institution or put up for sale against your will if you live past your loan term - even if the current property value creeps under the balance of the loan. Contact us at 954.920.9799 if you'd like to explore the advantages of reverse mortgages.
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