With a reverse mortgage (also referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. The lender pays out funds based on your home equity amount; you get a lump sum, a monthly payment or a line of credit. Repayment is not necessary until the homeowner puts his home up for sale, moves (such as into a retirement community) or dies. You or an estate representative is required to repay the reverse mortgage amount, interest , and finance fees after your property is sold, or you are no longer living in it.
Typically, reverse mortgages are offered to borrowers who are at least 62 years old, have a low or zero balance owed against the home and use the house as your main residence.
Reverse mortgages can be ideal for retired homeowners or those who are no longer working and have a need to add to their income. Social Security and Medicare benefits won't be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed rates. The home can never be in danger of being taken away by the lending institution or put up for sale against your will if you live past your loan term - even if the property value dips under the balance of the loan. Contact us at 469-640-0400 to explore your reverse mortgage options.
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