Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to use their equity without selling their home. Choosing between a monthly payment, a line of credit, or a lump sum, you may receive a loan amount determined by your home equity. Paying back your loan is not necessary until when the borrower puts his home up for sale, moves (such as into a care facility) or passes away. After you sell your property or you no longer use it as your primary residence, you (or your estate) are required to repay the lending institution for the money you obtained from the reverse mortgage in addition to interest among other fees.
Generally, reverse mortgages are appropriate for borrowers at least 62 years old, have a low or zero balance in a mortgage and use the home as your principal living place.
Reverse mortgages can be ideal for homeowners who are retired or no longer working and have a need to supplement their fixed income. Rates of interest may be fixed or adjustable while the funds are nontaxable and do not affect Medicare or Social Security benefits. The house can never be at risk of being taken away from you by the lending institution or put up for sale without your consent if you outlive the loan term - even if the current property value goes below the loan balance. Contact us at 954.920.9799 to explore your reverse mortgage options.
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