Reverse mortgages (also called "home equity conversion loans") enable older homeowners to use their built-up equity without the necessity of selling their home. The lending institution pays out funds based on your home equity amount; you receive a one-time amount, a payment every month or a line of credit. Repayment isn't necessary until the borrower sells the property, moves (such as into a retirement community) or passes away. You or representative of your estate has to pay back the reverse mortgage amount, interest , and finance fees when your property is sold, or you are no longer living in it.
The requirements of a reverse mortgage loan generally include being sixty-two or older, using the home as your primary living place, and having a low remaining mortgage balance or having paid it off.
Reverse mortgages can be advantageous for retired homeowners or those who are no longer working and need to supplement their income. Social Security and Medicare benefits won't be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. The lending institution will not take the property away if you live past the loan term nor will you be obligated to sell your residence to repay the loan amount even if the balance grows to exceed property value. Contact us at 407-834-3377 to explore your reverse mortgage options.
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