Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to benefit from their equity without selling their home. Deciding how you would prefer to to receive your funds: by a monthly amount, a line of credit, or a lump sum, you can get a loan based on your equity. The borrowed money doesn't have to be paid back until the borrower sells the residence, moves out, or passes away. You or your estate representative must repay the reverse mortgage loan, interest , and other finance fees at the time your property is sold, or you no longer live in it.
The requirements of a reverse mortgage usually include being sixty-two or older, maintaining your property as your main residence, and holding a low balance on your mortgage or owning your home outright.
Reverse mortgages are appropriate for homeowners who are retired or no longer bringing home a paycheck but must add to their fixed income. Social Security and Medicare benefits aren't affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed interest rates. Your residence can never be in danger of being taken away by the lending institution or sold without your consent if you outlive the loan term - even if the property value creeps below the loan balance. If you would like to learn more about reverse mortgages, please call us at 954-375-7774.
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