Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to tap into equity without having to sell their home. Choosing between a monthly amount, a line of credit, or a one-time payment, you can take out a loan based on your equity. The borrowed money doesn't have to be paid back until the borrower sells the residence, moves out, or dies. At the time your home has been sold or you no longer use it as your main residence, you (or your estate) must repay the lender for the money you received from the reverse mortgage plus interest among other finance charges.
Who is Eligible?
Generally, reverse mortgages require you be at least sixty-two years old, have a small or zero balance owed against your home and maintain the home as your principal residence.
Many homeowners who live on a limited income and have a need for additional money find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits won't be affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed interest rates. The house is never in danger of being taken away by the lending institution or sold against your will if you outlive your loan term - even if the property value creeps under the loan balance. Contact us at 954-605-2450 to look into your reverse mortgage options.
Clear Mortgage Lending, Inc. can answer questions about reverse mortgages and many others. Call us: 954-605-2450.