In a reverse mortgage (sometimes referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. The lender gives you money determined by the equity you've accrued in your home; you receive a one-time amount, a payment every month or a line of credit. Paying back your loan is not necessary until when the homeowner sells the home, moves (such as to a retirement community) or dies. At the time you sell your home or you no longer use it as your main residence, you (or your estate) must repay the lending institution for the funds you got from the reverse mortgage in addition to interest and other fees.
Usually, reverse mortgages are appropriate for borrowers at least 62 years of age, have a low or zero balance owed against the home and maintain the house as your principal residence.
Many homeowners who live on a limited income and find themselves needing additional funds find reverse mortgages helpful for their situation. Social Security and Medicare benefits can not be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. Your lending institution can't take the property away if you live past the loan term nor can you be forced to sell your residence to pay off the loan even if the loan balance is determined to exceed current property value. Call us at 954-375-7774 to discuss your reverse mortgage options.
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