Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to benefit from their equity without the necessity of selling their home. Deciding how you would prefer to be paid: by a monthly payment amount, a line of credit, or a lump sum, you can get a loan amount determined by your home equity. Paying back your loan is not necessary until the homeowner sells the property, moves (such as to a retirement community) or dies. At the time you sell your property or you no longer use it as your primary residence, you (or your estate) must pay back the lender for the money you got from the reverse mortgage in addition to interest and other fees.
The requirements of a reverse mortgage generally are being sixty-two or older, maintaining your home as your primary residence, and holding a small balance on your mortgage or having paid it off.
Many homeowners who live on a fixed income and have a need for additional funds find reverse mortgages helpful for their circumstance. Interest rates may be fixed or adjustable while the funds are nontaxable and don't affect Medicare or Social Security benefits. The lending institution can't take the property away if you live past the loan term nor may you be required to sell your home to repay your loan even if the balance is determined to exceed current property value. Contact us at (941) 954-4252 if you'd like to explore the advantages of reverse mortgages.