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 lender gives you funds based on your home equity amount; you receive a lump sum, a payment every month or a line of credit. The loan doesn't have to be repaid until the borrower sells the residence, moves away, or dies. After you sell your property or is no longer used as your main residence, you (or your estate) must pay back the lender for the funds you got from the reverse mortgage as well as interest and other fees.
The conditions of a reverse mortgage normally are being 62 or older, using the home as your main residence, and holding a low remaining mortgage balance or having paid it off.
Homeowners who are on a limited income and find themselves needing additional funds find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits are not affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. Your house is never at risk of being taken away by the lending institution or put up for sale against your will if you outlive the loan term - even if the property value dips under the loan balance. Contact us at 469-640-0400 to look into your reverse mortgage options.
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