Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to benefit from their built-up equity without selling their home. Choosing between a monthly amount, a line of credit, or a one-time payment, you can get a loan amount determined by your home equity. The borrowed money doesn't have to be repaid until the borrower sells the residence, moves away, or passes away. After you sell your property or is no longer used as your main residence, you (or your estate) have to repay the lending institution for the funds you got from your reverse mortgage in addition to interest and other fees.
The conditions of a reverse mortgage loan generally are being sixty-two or older, using the property as your primary residence, and having a low remaining mortgage balance or having paid it off.
Many homeowners who live on a fixed income and have a need for additional funds find reverse mortgages ideal for their circumstance. Rates of interest can be fixed or adjustable while the money is nontaxable and does not interfere with Social Security or Medicare benefits. Your home is never in danger of being taken away by the lending institution or put up for sale without your consent if you live past the loan term - even if the property value goes below the balance of the loan. If you'd like to find out more about reverse mortgages, feel free to call us at 205-941-1484.
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