Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to tap into home equity without the necessity of selling their home. The lending institution 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. Repayment isn't necessary until after the homeowner puts his home up for sale, moves (such as into a care facility) or passes away. At the time your home sells or you no longer use it as your primary residence, you (or your estate) have to repay the lender for the money you received from your reverse mortgage as well as interest among other finance charges.
The conditions of a reverse mortgage typically are being sixty-two or older, maintaining your home as your main living place, and holding a low remaining mortgage balance or having paid it off.
Reverse mortgages can be advantageous for homeowners who are retired or no longer working but need to add to their limited income. Rates of interest can be fixed or adjustable and the money is nontaxable and doesn't adversely affect Social Security or Medicare benefits. Your lender can't take the property away if you live past the loan term nor can you be obligated to sell your residence to pay off the loan even when the loan balance grows to exceed current property value. Contact us at 727-466-4301 to look into your reverse mortgage options.
Do you have a question regarding a mortgage program?