Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to use their built-up home equity without having to sell their home. The lending institution pays you money determined by your home equity amount; you receive a one-time amount, a payment each month or a line of credit. The borrowed money does not have to be repaid until the borrower sells the residence, moves out, or passes away. After your house has been sold or is no longer used as your primary residence, you (or your estate) have to pay back the lending institution for the money you got from the reverse mortgage plus interest among other finance charges.
Usually, reverse mortgages require youto be at least sixty-two years of age, have a small or zero balance in a mortgage and maintain the property as your principal living place.
Homeowners who live on a fixed income and have a need for additional money find reverse mortgages helpful for their circumstance. Interest rates can be fixed or adjustable while the money is nontaxable and does not interfere with Social Security or Medicare benefits. The house is never at risk of being taken away by the lending institution or sold against your will if you outlive the loan term - even if the current property value goes under the loan balance. If you would like to learn more about reverse mortgages, feel free to call us at 253-848-1255.
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.