Reverse mortgages (also called "home equity conversion loans") enable older homeowners to tap into home equity without the necessity of selling their home. Deciding how you'd like to be paid: by a monthly payment amount, a line of credit, or a lump sum, you can receive a loan based on your equity. Paying back your loan isn't required until the homeowner puts his home up for sale, moves (such as into a care facility) or dies. At the time you sell your property or is no longer used as your primary residence, you (or your estate) must pay back the lender for the money you received from your reverse mortgage as well as interest and other finance charges.
The conditions of a reverse mortgage loan normally are being sixty-two or older, maintaining the house as your primary residence, and having a small balance on your mortgage or owning your home outright.
Reverse mortgages can be advantageous for homeowners who are retired or no longer bringing home a paycheck and have a need to add to their fixed income. Interest rates can be fixed or adjustable while the money is nontaxable and does not affect Social Security or Medicare benefits. The lending institution can't take the property away if you live past the loan term nor will you be obligated to sell your residence to pay off your loan even when the balance grows to exceed current property value. If you'd like to find out more about reverse mortgages, please call us at (941) 954-4252.