Reverse mortgages (also called "home equity conversion loans") give older homeowners the ability to tap into equity without the necessity of selling their home. Deciding how you would prefer to to receive your money: by a monthly payment, a line of credit, or a lump sum, you can take out a loan amount determined by your home equity. The loan doesn't have to be paid back until the homeowner sells his residence, moves away, or dies. When you sell your property or is no longer used as your main residence, you (or your estate) must repay the lender for the money you got from your reverse mortgage as well as interest and other finance charges.
The conditions of a reverse mortgage loan generally are being 62 or older, maintaining your property as your main residence, and holding a low balance on your mortgage or having paid it off.
Many homeowners who are on a limited income and find themselves needing additional money find reverse mortgages advantageous for their circumstance. Rates of interest can be fixed or adjustable while the funds are nontaxable and do not adversely affect Medicare or Social Security benefits. The house will never be in danger of being taken away from you by the lender or sold against your will if you live longer than your loan term - even if the current property value dips under the loan balance. If you'd like to find out more about reverse mortgages, please contact us at (941) 954-4252.