Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to benefit from their built-up home equity without selling their home. The lending institution gives you money based on your home equity amount; you receive a one-time amount, a monthly payment or a line of credit. Paying back your loan isn't necessary until the time the borrower sells the home, moves (such as to a retirement community) or dies. You or representative of your estate is required to pay back the reverse mortgage loan, interest , and finance fees when your house is sold, or you are no longer living in it.
Typically, reverse mortgages are appropriate for borrowers at least sixty-two years old, have a small or zero balance in a mortgage and maintain the property as your principal residence.
Reverse mortgages can be ideal for retired homeowners or those who are no longer working but need to supplement their fixed income. Social Security and Medicare benefits aren't affected; and the money is nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. The house is never at risk of being taken away by the lending institution or sold without your consent if you outlive your loan term - even if the property value goes below the balance of the loan. Call us at (941) 954-4252 if you want to explore the advantages of reverse mortgages.