In a reverse mortgage (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without having to sell their homes. Choosing between a monthly payment amount, a line of credit, or a lump sum, you may take out a loan based on your equity. The borrowed money does not have to be paid back until the borrower sells his residence, moves out, or dies. At the time your house has been sold or you no longer use it as your primary residence, you (or your estate) have to pay back the lending institution for the funds you obtained from your reverse mortgage in addition to interest and other finance charges.
Generally, reverse mortgages require you be at least 62 years old, have a small or zero balance owed against your home and use the property as your main residence.
Reverse mortgages can be ideal for retired homeowners or those who are no longer working and need to supplement their income. Social Security and Medicare benefits are not affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed rates. Your house is never at risk of being taken away from you by the lender or sold against your will if you live past the loan term - even if the current property value goes under the balance of the loan. Contact us at 954-375-7774 if you'd like to explore the benefits of reverse mortgages.
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