With a reverse mortgage (also called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without having to sell their homes. The lender pays out funds based on your home equity amount; you receive a lump sum, a monthly payment or a line of credit. Paying back your loan isn't required until after the borrower sells the property, moves (such as to a retirement community) or passes away. When you sell your property or you no longer use it as your main residence, you (or your estate) have to pay back the lending institution for the funds you obtained from the reverse mortgage as well as interest and other fees.
Generally, reverse mortgages require youto be at least 62 years of age, have a low or zero balance in a mortgage and use the property as your principal residence.
Reverse mortgages are helpful for homeowners who are retired or no longer bringing home a paycheck but must supplement their income. Social Security and Medicare benefits can't be affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed rates. Your lender isn't able to take the property away if you live past the loan term nor can you be made to sell your home to repay the loan amount even if the loan balance is determined to exceed current property value. Contact us at 954-375-7774 if you want to explore the benefits of reverse mortgages.
Do you have a question regarding a mortgage program?