Reverse mortgages (also called "home equity conversion loans") enable older homeowners to tap into built-up home equity without selling their home. Choosing between a monthly payment amount, a line of credit, or a one-time payment, you may get a loan amount determined by your equity. Paying back your loan is not required until the borrower puts his home up for sale, moves (such as into a retirement community) or dies. When your home sells or is no longer used as your main residence, you (or your estate) must repay the lender for the money you obtained from your reverse mortgage plus interest among other fees.
The requirements of a reverse mortgage loan typically are being sixty-two or older, using the home as your primary living place, and holding a small remaining mortgage balance or having paid it off.
Reverse mortgages are advantageous for retired homeowners or those who are no longer working and need to add to their fixed income. Social Security and Medicare benefits will not be affected; and the money is nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. The home is never at risk of being taken away from you by the lender or sold without your consent if you live longer than your loan term - even if the current property value creeps below the loan balance. If you would like to learn more about reverse mortgages, please contact us at (941) 954-4252.