With a reverse mortgage loan (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 lender pays out money determined by your home equity amount; you get a lump sum, a monthly payment or a line of credit. Paying back your loan is not required until when the homeowner puts his home up for sale, moves (such as to a care facility) or dies. After your home has been sold or is no longer used as your primary residence, you (or your estate) must pay back the lending institution for the cash you got from the reverse mortgage in addition to interest and other fees.
The requirements of a reverse mortgage loan normally are being 62 or older, maintaining the home as your primary residence, and holding a low balance on your mortgage or owning your home outright.
Reverse mortgages can be appropriate for retired homeowners or those who are no longer working but must add to their limited income. Rates of interest may be fixed or adjustable while the funds are nontaxable and don't adversely affect Social Security or Medicare benefits. The residence will never be at risk 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 below the balance of the loan. Call us at (941) 954-4252 to discuss your reverse mortgage options.