With a reverse mortgage (sometimes called a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without having to sell their homes. The lending institution gives you funds based on your home equity amount; you get a one-time amount, a payment every month or a line of credit. Repayment is not necessary until the time the homeowner sells the home, moves (such as to a care facility) or dies. After your home sells or is no longer used as your main residence, you (or your estate) must repay the lender for the cash you received from the reverse mortgage in addition to interest among other fees.
Most reverse mortgages require youto be at least sixty-two years old, have a low or zero balance owed against the home and use the home as your principal living place.
Reverse mortgages can be great for homeowners who are retired or no longer bringing home a paycheck and must add to their income. Social Security and Medicare benefits can not be affected; and the money is nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. The lending institution isn't able to take away your house if you outlive your loan nor will you be required to sell your residence to repay your loan amount even when the loan balance grows to exceed current property value. If you would like to find out more about reverse mortgages, feel free to contact us at (941) 954-4252.