In a reverse mortgage (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without selling their homes. The lender pays you money based on your home equity amount; you get a one-time amount, a payment each month or a line of credit. Repayment is not necessary until after the homeowner puts his home up for sale, moves (such as to a care facility) or passes away. After your home sells or is no longer used as your main residence, you (or your estate) have to pay back the lending institution for the funds you obtained from your reverse mortgage as well as interest and other fees.
Generally, reverse mortgages are offered to borrowers at least 62 years old, have a small or zero balance in a mortgage and maintain the home as your main living place.
Homeowners who live on a limited income and find themselves needing additional money find reverse mortgages ideal for their circumstance. Social Security and Medicare benefits are not affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. The lender can't take the property away if you live past the loan term nor will you be required to sell your residence to pay off the loan even when the loan balance grows to exceed current property value. Contact us at 703-288-0777 to look into your reverse mortgage options.
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