Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to tap into equity without selling their home. The lender pays you funds determined by your home equity amount; you get a one-time amount, a monthly payment or a line of credit. The loan doesn't have to be paid back until the borrower sells his home, moves away, or dies. You or your estate representative must repay the reverse mortgage funds, interest , and finance fees when your house is sold, or you can no longer use it as your primary residence.
The requirements of a reverse mortgage usually are being sixty-two or older, using the home as your primary residence, and holding a small remaining mortgage balance or having paid it off.
Reverse mortgages can be great for retired homeowners or those who are no longer bringing home a paycheck but need to add to their income. Social Security and Medicare benefits aren't affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. The home is never in danger of being taken away from you by the lender or sold without your consent if you live longer than the loan term - even if the current property value goes below the loan balance. Call us at 610-565-3600 to explore your reverse mortgage options.