Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to benefit from their built-up equity without the necessity of selling their home. The lending institution gives you funds determined by your home equity amount; you get a one-time amount, a monthly payment or a line of credit. The loan doesn't have to be repaid until the homeowner sells his residence, moves away, or passes away. After you sell your property or you no longer use it as your primary residence, you (or your estate) must pay back the lending institution for the cash you obtained from your reverse mortgage as well as interest among other finance charges.
Typically, 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 property as your main residence.
Many homeowners who are on a fixed income and need additional money find reverse mortgages advantageous for their situation. Rates of interest may be fixed or adjustable while the funds are nontaxable and do not affect Medicare or Social Security benefits. Your residence is never in danger of being taken away by the lender or sold against your will if you outlive your loan term - even if the property value goes under the loan balance. If you would like to learn more about reverse mortgages, feel free to call us at 703-288-0777.
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