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 living expenses without selling their homes. The lender gives you funds determined by the equity you've built-up in your home; you get a lump sum, a payment every month or a line of credit. The borrowed money doesn't have to be repaid until the borrower sells his home, moves away, or passes away. You or your estate representative has to pay back the reverse mortgage amount, interest , and other finance fees at the time your home is sold, or you can no longer use it as your primary residence.
The conditions of a reverse mortgage generally are being sixty-two or older, maintaining the home as your main residence, and holding a small remaining mortgage balance or owning your home outright.
Homeowners who live on a limited income and need additional money find reverse mortgages advantageous for their circumstance. Rates of interest may be fixed or adjustable while the money is nontaxable and does not adversely affect Social Security or Medicare benefits. Your lending institution is not able to take away your house if you outlive your loan nor can you be made to sell your home to repay the loan even when the loan balance grows to exceed property value. Contact us at 954.920.9799 to discuss your reverse mortgage options.
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