Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to tap into built-up home equity without the necessity of selling their home. Choosing between a monthly payment amount, a line of credit, or a one-time payment, you can get a loan amount determined by your home equity. Paying back your loan isn't required until the homeowner puts his home up for sale, moves (such as to a care facility) or passes away. When you sell your home or you no longer use it as your primary residence, you (or your estate) must repay the lender for the money you got from the reverse mortgage in addition to interest among other finance charges.
Typically, reverse mortgages require you be at least 62 years of age, have a low or zero balance owed against your home and maintain the house as your main residence.
Homeowners who are on a limited income and have a need for additional funds find reverse mortgages helpful for their circumstance. Social Security and Medicare benefits are not affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed rates. The lender can't take away your residence if you live past the loan term nor can you be made to sell your home to pay off the loan amount even when the balance is determined to exceed property value. Contact us at 703-288-0777 to look into your reverse mortgage options.
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