Reverse Mortgages:the Facts
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Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to tap into built-up equity without having to sell their home. Reverse mortgages can also be used to BUY primary residences. The lending institution gives you funds based on your home equity amount; you get a lump sum, a monthly payment or a line of credit. The borrowed money does not have to be paid back until the homeowner sells his residence, moves away, or passes away. After your home sells or you no longer use it as your primary residence, you (or your estate) have to repay the lender for the cash you received from the reverse mortgage as well as interest and other finance charges.
Are you Eligible?
The conditions of a reverse mortgage generally include being sixty-two or older, maintaining the house as your main living place, and having a low balance on your mortgage or owning your home outright.
Reverse mortgages can be great for retired homeowners or those who are no longer working and need to supplement their income. Rates of interest can be fixed or adjustable while the money is nontaxable and does not adversely affect Medicare or Social Security benefits. The residence is never in danger of being taken away from you by the lender or put up for sale without your consent if you live longer than your loan term - even if the current property value creeps under the balance of the loan. Call us at 214-663-5355 to explore your reverse mortgage options.
At America's First Choice Mortgage LLC, we answer questions about reverse mortgages every day. Call us: 214-663-5355.