With a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. Choosing between 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 isn't necessary until the homeowner sells the home, moves (such as to a care facility) or dies. When your house has been sold or you no longer use it as your primary residence, you (or your estate) are obligated to repay the lending institution for the cash you got from the reverse mortgage as well as interest among other finance charges.
The requirements of a reverse mortgage loan generally include being sixty-two or older, using the property as your primary living place, and holding a low balance on your mortgage or owning your home outright.
Reverse mortgages can be great for retired homeowners or those who are no longer bringing home a paycheck and have a need to add to their income. Rates of interest may be fixed or adjustable while the funds are nontaxable and don't affect Social Security or Medicare benefits. Your lender cannot take away your property if you live past the loan term nor may you be made to sell your residence to repay your loan even if the loan balance is determined to exceed property value. Contact us at 703-288-0777 to explore your reverse mortgage options.
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