Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to tap into built-up equity without the necessity of selling their home. Choosing between a monthly payment amount, a line of credit, or a one-time payment, you may get a loan based on your equity. Paying back your loan isn't required until after the borrower sells the home, moves (such as to a care facility) or dies. You or your estate representative is required to repay the reverse mortgage amount, interest accrued, and finance charges after your property is sold, or you are no longer living in it.
The conditions of a reverse mortgage loan generally are being sixty-two or older, using the property as your primary residence, and having a low remaining mortgage balance or having paid it off.
Homeowners who live on a limited income and need additional funds find reverse mortgages advantageous for their situation. Social Security and Medicare benefits aren't affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. The lender will not take the property away if you outlive your loan nor may you be required to sell your residence to repay the loan amount even if the balance is determined to exceed property value. Contact us at 561-395-4264 if you want to explore the advantages of reverse mortgages.