In a reverse mortgage (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. Deciding how you'd prefer to to receive your funds: by a monthly amount, a line of credit, or a one-time payment, you may take out a loan based on your home equity. Paying back your loan is not required until after the homeowner sells the home, moves (such as into a care facility) or passes away. When you sell your home or you no longer use it as your main residence, you (or your estate) must pay back the lending institution for the cash you got from your reverse mortgage as well as interest among other finance charges.
The conditions of a reverse mortgage typically are being sixty-two or older, maintaining your house as your primary residence, and holding a low remaining mortgage balance or having paid it off.
Reverse mortgages are helpful for retired homeowners or those who are no longer bringing home a paycheck but have a need to supplement their limited income. Social Security and Medicare benefits aren't affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed interest rates. Your lending institution will not take the property away if you live past the loan term nor may you be required to sell your residence to repay your loan even if the loan balance grows to exceed property value. Contact us at 954-964-2220 to discuss your reverse mortgage options.
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