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 anything they need without selling their homes. Choosing between a monthly amount, a line of credit, or a lump sum, you can get a loan amount determined by your equity. Repayment is not necessary until the homeowner sells the home, moves (such as to a retirement community) or passes away. You or representative of your estate must pay back the reverse mortgage funds, interest , and finance fees when your property is sold, or you can no longer use it as your primary residence.
Generally, reverse mortgages require youto be at least sixty-two years old, have a small or zero balance owed against your home and use the house as your principal residence.
Homeowners who live on a fixed income and need additional money find reverse mortgages ideal for their situation. Social Security and Medicare benefits will not be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. The lending institution can't take away your property if you live past the loan term nor will you be obligated to sell your home to pay off the loan even if the loan balance grows to exceed property value. If you'd like to find out more about reverse mortgages, feel free to contact us at 469-640-0400.
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