In a reverse mortgage (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 gives you money based on your home equity amount; you get a one-time amount, a payment each month or a line of credit. Paying back your loan is not required until after the homeowner puts his home up for sale, moves (such as to a care facility) or passes away. You or representative of your estate must pay back the reverse mortgage amount, interest , and other finance charges when your property is sold, or you no longer live in it.
Typically, reverse mortgages are offered to homeowners who are at least sixty-two years of age, have a low or zero balance owed against the home and maintain the property as your principal residence.
Many homeowners who live on a fixed income and have a need for additional funds find reverse mortgages helpful for their situation. Social Security and Medicare benefits are not affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed interest rates. Your lending institution is not able to take the property away if you outlive your loan nor may you be made to sell your home to pay off the loan amount even if the loan balance is determined to exceed current property value. Contact us at (941) 954-4252 to look into your reverse mortgage options.