Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to use their built-up equity without selling their home. The lending institution gives you money determined by the equity you've built-up in your home; you get a one-time amount, a payment every month or a line of credit. The loan doesn't have to be paid back until the borrower sells his residence, moves away, or dies. At the time your home has been sold or you no longer use it as your primary residence, you (or your estate) have to pay back the lender for the money you obtained from the reverse mortgage in addition to interest among other finance charges.
Typically, reverse mortgages require youto be at least sixty-two years of age, have a small or zero balance owed against your home and maintain the home as your principal living place.
Reverse mortgages can be great for homeowners who are retired or no longer working and have a need to supplement their limited income. Rates of interest can be fixed or adjustable while the money is nontaxable and doesn't affect Social Security or Medicare benefits. The home is never in danger of being taken away by the lender or put up for sale against your will if you outlive your loan term - even if the current property value creeps below the loan balance. Contact us at 469-640-0400 to explore your reverse mortgage options.
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