Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to benefit from their built-up equity without selling their home. Deciding how you prefer to be paid: by a monthly payment amount, a line of credit, or a one-time payment, you can take out a loan based on your home equity. The loan doesn't have to be paid back until the homeowner sells his home, moves away, or dies. When your house has been sold or you no longer use it as your primary residence, you (or your estate) must repay the lending institution for the money you obtained from the reverse mortgage in addition to interest and other fees.
The conditions of a reverse mortgage loan usually are being 62 or older, using the home as your main residence, and holding a low remaining mortgage balance or having paid it off.
Homeowners who are on a fixed income and find themselves needing additional money find reverse mortgages helpful for their circumstance. Social Security and Medicare benefits are not affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed interest rates. The residence is never in danger of being taken away by the lending institution or sold against your will if you outlive your loan term - even if the property value creeps under the loan balance. Contact us at (941) 954-4252 if you want to explore the advantages of reverse mortgages.