Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to use their built-up equity without selling their home. The lending institution gives you funds based on your home equity amount; you receive a one-time amount, a monthly payment or a line of credit. Repayment isn't necessary until after the homeowner puts his home up for sale, moves (such as to a retirement community) or passes away. At the time your house has been sold or is no longer used as your main residence, you (or your estate) must repay the lender for the money you received from the reverse mortgage in addition to interest among other finance charges.
Most reverse mortgages are appropriate for homeowners who are at least 62 years old, have a small or zero balance owed against the home and maintain the house as your main residence.
Homeowners who are on a limited income and find themselves needing additional money find reverse mortgages helpful for their circumstance. Social Security and Medicare benefits will not be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. Your lender is not able to take away your home if you outlive your loan nor may you be made to sell your residence to pay off the loan even when the loan balance grows to exceed current property value. Contact us at 407-834-3377 to explore your reverse mortgage options.
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