Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to benefit from their built-up equity without having to sell their home. Choosing between a monthly payment amount, a line of credit, or a lump sum, you may receive a loan based on your home equity. The loan doesn't have to be paid back until the borrower sells his home, moves out, or dies. At the time your home has been sold or is no longer used as your main residence, you (or your estate) have to repay the lender for the funds you received from the reverse mortgage as well as interest among other finance charges.
The requirements of a reverse mortgage often are being sixty-two or older, maintaining your house as your main living place, and holding a small balance on your mortgage or having paid it off.
Homeowners who are on a fixed income and need additional funds find reverse mortgages helpful for their situation. Rates of interest may be fixed or adjustable and the money is nontaxable and does not affect Medicare or Social Security benefits. Your lender cannot take the property away if you outlive your loan nor will you be made to sell your residence to repay the loan amount even if the balance is determined to exceed current property value. Contact us at 205-941-1484 if you would like to explore the advantages of reverse mortgages.
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