In a reverse mortgage loan (also referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. Deciding how you'd like to be paid: by a monthly amount, a line of credit, or a one-time payment, you may get a loan based on your home equity. The loan doesn't have to be paid back until the borrower sells the home, moves away, or dies. At the time you sell your home or you no longer use it as your primary residence, you (or your estate) have to pay back the lending institution for the funds you got from your reverse mortgage plus interest among other finance charges.
Usually, reverse mortgages require you be at least 62 years of age, have a low or zero balance in a mortgage and maintain the property as your main residence.
Many homeowners who are on a fixed income and have a need for additional funds find reverse mortgages helpful for their situation. Social Security and Medicare benefits won't be affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed rates. Your house is never at risk of being taken away by the lending institution or sold without your consent if you live past your loan term - even if the current property value creeps below the balance of the loan. Call us at 561-395-4264 to explore your reverse mortgage options.