With a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without having to sell their homes. Choosing between a monthly payment amount, a line of credit, or a one-time payment, you can take out a loan amount determined by your equity. Paying back your loan isn't required until after the borrower sells the property, moves (such as to a care facility) or dies. At the time you sell your property or you no longer use it as your primary residence, you (or your estate) are obligated to repay the lender for the money you obtained from your reverse mortgage in addition to interest among other finance charges.
Typically, reverse mortgages are offered to homeowners at least 62 years of age, have a small or zero balance in a mortgage and use the home as your main living place.
Reverse mortgages can be ideal for homeowners who are retired or no longer bringing home a paycheck and must add to their fixed income. Social Security and Medicare benefits will not be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed rates. Your lender will not take away your property if you outlive your loan nor can you be obligated to sell your residence to repay the loan even if the balance is determined to exceed property value. If you would like to learn more about reverse mortgages, feel free to call us at 469-640-0400.
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