With a reverse mortgage (also called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without having to sell their homes. Choosing between a monthly payment amount, a line of credit, or a lump sum, you may take out a loan amount determined by your equity. Paying back your loan isn't necessary until after the borrower sells the home, moves (such as into a care facility) or dies. At the time you sell your home or is no longer used as your primary residence, you (or your estate) must pay back the lender for the money you received from your reverse mortgage in addition to interest and other fees.
The conditions of a reverse mortgage often include being 62 or older, using the home as your main residence, and having a low balance on your mortgage or owning your home outright.
Reverse mortgages are advantageous for retired homeowners or those who are no longer bringing home a paycheck and need to add to their limited income. Social Security and Medicare benefits can not be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed interest rates. Your lending institution will not take the property away if you outlive your loan nor will you be obligated to sell your residence to pay off your loan even when the balance is determined to exceed property value. If you'd like to learn more about reverse mortgages, please contact us at (561) 329-0075.
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.