Reverse mortgages (also called "home equity conversion loans") enable older homeowners to tap into built-up home equity without the necessity of selling their home. The lending institution pays you money determined by the equity you've built-up in your home; you get a one-time amount, a monthly payment or a line of credit. Paying back your loan isn't necessary until after the homeowner puts his home up for sale, moves (such as into a care facility) or dies. When your home sells or is no longer used as your main residence, you (or your estate) must repay the lending institution for the funds you obtained from the reverse mortgage as well as interest and other finance charges.
The requirements of a reverse mortgage loan often include being 62 or older, maintaining your home as your main residence, and having a small balance on your mortgage or having paid it off.
Reverse mortgages are helpful for retired homeowners or those who are no longer working but have a need to supplement their income. Social Security and Medicare benefits aren't affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed rates. The lender can't take away your property if you live past the loan term nor will you be required to sell your residence to pay off the loan amount even when the balance grows to exceed property value. Contact us at (941) 954-4252 if you want to explore the advantages of reverse mortgages.