Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to use their built-up home equity without selling their home. The lender pays you money determined by the equity you've accrued in your home; you get a lump sum, a payment each month or a line of credit. Repayment is not required until the time the homeowner sells the property, moves (such as to a retirement community) or passes away. After you sell your home or is no longer used as your main residence, you (or your estate) must pay back the lender for the funds you obtained from the reverse mortgage plus interest and other fees.
Usually, reverse mortgages require you be at least sixty-two years old, have a small or zero balance in a mortgage and maintain the home as your principal living place.
Reverse mortgages are great for homeowners who are retired or no longer bringing home a paycheck but have a need to supplement their income. Interest rates may be fixed or adjustable and the funds are nontaxable and don't interfere with Social Security or Medicare benefits. The residence 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 property value dips below the loan balance. Contact us at 561-395-4264 to look into your reverse mortgage options.