Reverse mortgages (also called "home equity conversion loans") give older homeowners the ability to tap into home equity without selling their home. Choosing between a monthly payment, a line of credit, or a one-time payment, you may receive a loan based on your equity. Paying back your loan is not required until after the borrower puts his home up for sale, moves (such as to a care facility) or passes away. You or your estate representative must pay back the reverse mortgage loan, interest , and other finance charges at the time your home is sold, or you no longer live in it.
The requirements of a reverse mortgage loan typically 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.
Homeowners who are on a limited income and have a need for additional money find reverse mortgages helpful for their circumstance. Rates of interest may be fixed or adjustable and the funds are nontaxable and don't affect Social Security or Medicare benefits. The lender can't take away your residence if you outlive your loan nor will you be obligated to sell your home to pay off your loan even if the balance grows to exceed current property value. Contact us at 954.920.9799 to explore your reverse mortgage options.
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