Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to use their equity without the necessity of selling their home. Choosing between a monthly payment amount, a line of credit, or a lump sum, you may get a loan based on your equity. The borrowed money does not have to be repaid until the borrower sells the home, moves out, or dies. When you sell your home or is no longer used as your primary residence, you (or your estate) must repay the lending institution for the money you received from your reverse mortgage in addition to interest among other fees.
Usually, reverse mortgages are appropriate for homeowners at least 62 years of age, have a low or zero balance owed against your home and maintain the home as your main residence.
Reverse mortgages are ideal for retired homeowners or those who are no longer bringing home a paycheck and must add to their fixed income. Rates of interest can be fixed or adjustable while the money is nontaxable and doesn't affect Medicare or Social Security benefits. The lending institution isn't able to take away your house if you outlive your loan nor may you be obligated to sell your home to repay your loan amount even if the balance is determined to exceed current property value. If you would like to learn more about reverse mortgages, please call us at 703-288-0777.
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