Reverse mortgages (also called "home equity conversion loans") give older homeowners the ability to use their home equity without having to sell their home. Choosing between a monthly amount, a line of credit, or a lump sum, you may receive a loan amount determined by your home equity. Repayment isn't required until when the homeowner puts his home up for sale, moves (such as into a retirement community) or passes away. At the time your house sells or you no longer use it as your main residence, you (or your estate) have to pay back the lending institution for the cash you obtained from the reverse mortgage in addition to interest and other fees.
Most reverse mortgages are available for borrowers at least sixty-two years of age, have a low or zero balance in a mortgage and maintain the property as your principal residence.
Homeowners who are on a fixed income and find themselves needing additional money find reverse mortgages advantageous for their situation. Social Security and Medicare benefits can not be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. Your lender can't take the property away if you live past the loan term nor may you be made to sell your residence to repay the loan even if the balance is determined to exceed property value. Call us at 407-834-3377 if you would like to explore the advantages of reverse mortgages.
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