Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to tap into equity without the necessity of selling their home. The lending institution gives you funds determined by the equity you've built-up in your home; you get a one-time amount, a payment each month or a line of credit. The loan does not have to be paid back until the homeowner sells his residence, moves away, or passes away. When your house has been sold or is no longer used as your primary residence, you (or your estate) are required to repay the lending institution for the funds you got from the reverse mortgage in addition to interest among other finance charges.
The requirements of a reverse mortgage loan generally include being sixty-two or older, maintaining the property as your primary living place, and holding a low remaining mortgage balance or having paid it off.
Many homeowners who are on a limited income and need additional money find reverse mortgages ideal for their situation. Social Security and Medicare benefits can not be affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed interest rates. Your lending institution is not able to take the property away if you live past the loan term nor will you be required to sell your home to pay off your loan even if the loan balance is determined to exceed current property value. If you'd like to find out more about reverse mortgages, please call us at 623-972-6432.