In a reverse mortgage (also called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. The lender gives you funds determined by your home equity amount; you receive a one-time amount, a monthly payment or a line of credit. Repayment is not necessary until the borrower sells the home, moves (such as into a care facility) or passes away. At the time your home sells or you no longer use it as your main residence, you (or your estate) are obligated to repay the lender for the cash you got from your reverse mortgage plus interest among other finance charges.
Usually, reverse mortgages are available for borrowers at least 62 years of age, have a small or zero balance in a mortgage and maintain the home as your main residence.
Reverse mortgages are great for homeowners who are retired or no longer bringing home a paycheck but must add to their income. Social Security and Medicare benefits can not be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. The lending institution can't take away your residence if you outlive your loan nor may you be forced to sell your residence to pay off the loan amount even when the loan balance grows to exceed property value. Call us at 954-375-7774 to discuss your reverse mortgage options.
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