With a reverse mortgage (also referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without selling their homes. The lender pays out money based on the equity you've built-up in your home; you get a lump sum, a payment each month or a line of credit. The borrowed money does not have to be paid back until the homeowner sells the residence, moves away, or passes away. You or representative of your estate has to repay the reverse mortgage amount, interest accrued, and other finance charges after your home is sold, or you are no longer living in it.
The requirements of a reverse mortgage usually include being sixty-two or older, maintaining your property as your primary residence, and having a small remaining mortgage balance or owning your home outright.
Reverse mortgages are ideal for homeowners who are retired or no longer bringing home a paycheck and have a need to supplement their income. Rates of interest may be fixed or adjustable while the funds are nontaxable and don't affect Medicare or Social Security benefits. Your lending institution can't take the property away if you live past the loan term nor can you be forced to sell your home to repay your loan even when the loan balance is determined to exceed property value. Contact us at 954.920.9799 if you'd like to explore the advantages of reverse mortgages.
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