Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to use their built-up home equity without having to sell their home. Deciding how you would like to to receive your funds: by a monthly payment amount, a line of credit, or a lump sum, you can take out a loan based on your home equity. The loan does not have to be repaid until the homeowner sells the home, moves away, or dies. When you sell your home or is no longer used as your primary residence, you (or your estate) are obligated to pay back the lending institution for the funds you received from your reverse mortgage in addition to interest among other fees.
Most reverse mortgages require youto be at least 62 years old, have a small or zero balance owed against your home and maintain the home as your principal residence.
Reverse mortgages are appropriate for retired homeowners or those who are no longer bringing home a paycheck but have a need to add to their fixed income. Social Security and Medicare benefits can not be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed interest rates. Your house will never be in danger of being taken away by the lending institution or put up for sale without your consent if you outlive the loan term - even if the current property value creeps under the loan balance. If you would like to learn more about reverse mortgages, please contact us at (941) 954-4252.