In a reverse mortgage (also referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without having to sell their homes. The lender gives you funds based on the equity you've built-up in your home; you receive a one-time amount, a monthly payment or a line of credit. Paying back your loan is not necessary until when the borrower sells the property, moves (such as to a care facility) or dies. You or representative of your estate is obligated to pay back the reverse mortgage funds, interest accrued, and other finance fees when your house is sold, or you no longer live in it.
Typically, reverse mortgages are appropriate for homeowners at least 62 years of age, have a low or zero balance owed against your home and use the house as your principal residence.
Homeowners who are on a limited income and have a need for additional money find reverse mortgages ideal for their circumstance. Social Security and Medicare benefits are not affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed interest rates. Your lender will not take the property away if you live past the loan term nor may you be required to sell your home to pay off your loan even when the loan balance is determined to exceed property value. Call us at 610-565-3600 to look into your reverse mortgage options.