In a reverse mortgage (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without having to sell their homes. Deciding how you'd prefer to to receive your money: by a monthly payment amount, a line of credit, or a lump sum, you can take out a loan based on your equity. Paying back your loan is not required until the homeowner puts his home up for sale, moves (such as into a care facility) or passes away. You or representative of your estate has to repay the reverse mortgage funds, interest , and finance charges after your house is sold, or you can no longer use it as your primary residence.
The conditions of a reverse mortgage often are being 62 or older, maintaining your property as your main residence, and holding a small balance on your mortgage or having paid it off.
Many homeowners who live on a fixed income and have a need for additional funds find reverse mortgages helpful for their circumstance. Social Security and Medicare benefits will not be affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed interest rates. Your lending institution cannot take away your house if you outlive your loan nor may you be required to sell your home to pay off your loan amount even if the loan balance grows to exceed property value. Call us at 253-848-1255 if you'd like to explore the benefits of reverse mortgages.
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