With a reverse mortgage (also referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. The lender gives you money based on the equity you've accrued in your home; you receive a one-time amount, a payment every month or a line of credit. Paying back your loan is not necessary until the borrower puts his home up for sale, moves (such as into a care facility) or passes away. You or representative of your estate must pay back the reverse mortgage amount, interest , and other finance charges when your house is sold, or you no longer live in it.
The requirements of a reverse mortgage generally include being sixty-two or older, maintaining your house as your main living place, and holding a small balance on your mortgage or having paid it off.
Reverse mortgages are helpful for homeowners who are retired or no longer bringing home a paycheck but must add to their fixed income. Social Security and Medicare benefits will not be affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed interest rates. Your home can never be at risk of being taken away by the lending institution or sold against your will if you outlive your loan term - even if the property value goes below the balance of the loan. Contact us at 561-395-4264 to look into your reverse mortgage options.