With a reverse mortgage loan (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without having to sell their homes. The lender gives you money based on the equity you've accrued in your home; you get a lump sum, a payment each month or a line of credit. Paying back your loan isn't necessary until after the borrower puts his home up for sale, moves (such as to a care facility) or dies. When your home has been sold or is no longer used as your main residence, you (or your estate) have to pay back the lending institution for the cash you obtained from the reverse mortgage as well as interest and other fees.
Typically, reverse mortgages require youto be at least sixty-two years of age, have a low or zero balance in a mortgage and maintain the house as your principal residence.
Reverse mortgages are appropriate for retired homeowners or those who are no longer working and need to supplement their income. Rates of interest may be fixed or adjustable and the funds are nontaxable and do not affect Medicare or Social Security benefits. The lending institution can't take the property away if you live past the loan term nor may you be required to sell your residence to pay off your loan even if the balance grows to exceed current property value. Contact us at (941) 954-4252 if you want to explore the benefits of reverse mortgages.