In a reverse mortgage loan (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without having to sell their homes. The lender gives you money based on your home equity amount; you get a one-time amount, a monthly payment or a line of credit. The borrowed money does not have to be repaid until the homeowner sells the residence, moves out, or dies. You or an estate representative must pay back the reverse mortgage loan, interest accrued, and finance fees at the time your house is sold, or you no longer live in it.
The requirements of a reverse mortgage loan often include being 62 or older, using the home as your primary residence, and holding a low remaining mortgage balance or owning your home outright.
Many homeowners who are on a limited income and need additional money find reverse mortgages helpful for their situation. Social Security and Medicare benefits can not be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. Your residence will never be at risk of being taken away by the lending institution or sold against your will if you outlive the loan term - even if the property value goes under the balance of the loan. If you would like to find out more about reverse mortgages, please contact us at (440) 234-9660.
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