Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to use their built-up home equity without selling their home. Choosing between a monthly payment, a line of credit, or a lump sum, you can receive a loan based on your home equity. Paying back your loan isn't required until after the borrower sells the property, moves (such as into a retirement community) or passes away. You or an estate representative must repay the reverse mortgage loan, interest accrued, and finance fees when your property is sold, or you no longer live in it.
Most reverse mortgages require youto be at least sixty-two years of age, have a low or zero balance in a mortgage and use the property as your main residence.
Reverse mortgages can be appropriate for homeowners who are retired or no longer bringing home a paycheck and have a need to add to their limited income. Interest rates can be fixed or adjustable and the money is nontaxable and does not interfere with Social Security or Medicare benefits. The lender can't take the property away if you outlive your loan nor can you be required to sell your residence to repay the loan amount even if the loan balance grows to exceed current property value. Contact us at 610-565-3600 to explore your reverse mortgage options.