Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to tap into built-up home equity without selling their home. The lending institution pays out funds based on your home equity amount; you get a one-time amount, a monthly payment or a line of credit. Repayment isn't necessary until after the homeowner puts his home up for sale, moves (such as to a retirement community) or dies. At the time you sell your home or is no longer used as your main residence, you (or your estate) have to pay back the lender for the money you received from the reverse mortgage as well as interest and other fees.
The conditions of a reverse mortgage loan normally are being sixty-two or older, using the home as your primary living place, and having a low remaining mortgage balance or owning your home outright.
Reverse mortgages are helpful for retired homeowners or those who are no longer bringing home a paycheck and have a need to add to their fixed income. Rates of interest can be fixed or adjustable and the money is nontaxable and does not interfere with Medicare or Social Security benefits. The residence is never in danger of being taken away by the lending institution or sold against your will if you outlive the loan term - even if the current property value dips under the loan balance. If you would like to find out more about reverse mortgages, feel free to call us at (941) 954-4252.