Reverse mortgages (also called "home equity conversion loans") give older homeowners the ability to benefit from their built-up equity without the necessity of selling their home. The lender pays you funds determined by the equity you've built-up in your home; you receive a lump sum, a monthly payment or a line of credit. Repayment is not required until the borrower puts his home up for sale, moves (such as into a retirement community) or dies. You or representative of your estate is required to repay the reverse mortgage amount, interest , and other finance charges at the time your property is sold, or you can no longer call it your primary residence.
Most reverse mortgages are offered to homeowners who are at least sixty-two years old, have a low or zero balance owed against the home and use the house as your principal residence.
Reverse mortgages are appropriate for retired homeowners or those who are no longer working but must supplement their limited income. Social Security and Medicare benefits aren't affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed interest rates. Your lending institution is not able to take away your residence if you live past the loan term nor will you be required to sell your residence to repay your loan even when the balance grows to exceed property value. Contact us at 205-941-1484 if you would like to explore the advantages of reverse mortgages.
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