Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to use their built-up home equity without the necessity of selling their home. Deciding how you prefer to be paid: by a monthly amount, a line of credit, or a one-time payment, you may get a loan based on your equity. Repayment isn't necessary until after the borrower puts his home up for sale, moves (such as to a retirement community) or dies. After you sell your home or is no longer used as your primary residence, you (or your estate) must repay the lending institution for the money you received from your reverse mortgage in addition to interest and other finance charges.
Usually, reverse mortgages are offered to homeowners who are at least sixty-two years of age, have a small or zero balance owed against the home and maintain the home as your main living place.
Reverse mortgages can be advantageous for retired homeowners or those who are no longer bringing home a paycheck and have a need to add to their fixed income. Social Security and Medicare benefits can't be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. The lending institution can't take away your property if you outlive your loan nor can you be obligated to sell your home to repay your loan even if the balance is determined to exceed current property value. If you'd like to learn more about reverse mortgages, please contact us at 561-395-4264.