In a reverse mortgage loan (also referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without selling their homes. Deciding how you'd prefer to to receive your money: by a monthly payment amount, a line of credit, or a one-time payment, you may take out a loan amount determined by your equity. Repayment isn't required until after the borrower puts his home up for sale, moves (such as to a retirement community) or dies. You or your estate representative is required to repay the reverse mortgage amount, interest , and other finance fees when your house is sold, or you are no longer living in it.
Usually, reverse mortgages require you be at least sixty-two years of age, have a low or zero balance owed against the home and maintain the home as your principal residence.
Reverse mortgages can be advantageous for homeowners who are retired or no longer working and must add to their fixed income. Interest rates may be fixed or adjustable while the funds are nontaxable and do not affect Medicare or Social Security benefits. The lending institution can't take the property away if you outlive your loan nor may you be made to sell your residence to pay off your loan even when the loan balance grows to exceed current property value. If you'd like to learn more about reverse mortgages, feel free to contact us at 469-640-0400.
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