Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to use their built-up equity without the necessity of selling their home. Deciding how you would like to be paid: by a monthly payment amount, a line of credit, or a one-time payment, you may receive a loan based on your home equity. The loan does not have to be repaid until the borrower sells his home, moves away, or dies. At the time your home has been sold or is no longer used as your main residence, you (or your estate) have to repay the lender for the funds you received from the reverse mortgage plus interest among other fees.
The requirements of a reverse mortgage loan often are being sixty-two or older, using the house as your primary living place, and having a small balance on your mortgage or having paid it off.
Reverse mortgages are ideal for retired homeowners or those who are no longer working but need to supplement their limited income. Social Security and Medicare benefits aren't affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. Your residence can never be in danger of being taken away by the lender or put up for sale without your consent if you live longer than the loan term - even if the current property value dips below the balance of the loan. Call us at (941) 954-4252 if you would like to explore the benefits of reverse mortgages.