With a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. The lender gives you money determined by the equity you've built-up in your home; you receive a lump sum, a payment every month or a line of credit. Paying back your loan isn't required until after the borrower puts his home up for sale, moves (such as to a care facility) or dies. After you sell your home or you no longer use it as your primary residence, you (or your estate) have to repay the lender for the cash you got from the reverse mortgage in addition to interest and other finance charges.
Most reverse mortgages require youto be at least 62 years of age, have a low or zero balance in a mortgage and use the home as your main residence.
Many homeowners who live on a fixed income and have a need for additional money find reverse mortgages helpful for their situation. Rates of interest may be fixed or adjustable while the funds are nontaxable and don't interfere with Social Security or Medicare benefits. The residence is never in danger of being taken away from you by the lending institution or put up for sale without your consent if you live past your loan term - even if the current property value dips under the loan balance. Call us at 610-565-3600 if you would like to explore the advantages of reverse mortgages.