In a reverse mortgage loan (also called a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without selling their homes. Deciding how you would like to to receive your funds: by a monthly payment, a line of credit, or a lump sum, you may receive a loan based on your home equity. Repayment isn't required until after the borrower puts his home up for sale, moves (such as to a care facility) or dies. When you sell your property or is no longer used as your main residence, you (or your estate) have to repay the lender for the funds you obtained from your reverse mortgage plus interest among other fees.
The conditions of a reverse mortgage often 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.
Many homeowners who are on a fixed income and find themselves needing additional money find reverse mortgages advantageous for their situation. Social Security and Medicare benefits aren't affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed rates. Your lender cannot take the property away if you live past the loan term nor will you be made to sell your home to pay off your loan amount even if the loan balance grows to exceed current property value. If you'd like to find out more about reverse mortgages, please contact us at 610-565-3600.