Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to tap into equity without having to sell their home. The lending institution pays out money 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 isn't required until when the borrower puts his home up for sale, moves (such as into a care facility) or passes away. You or representative of your estate must repay the reverse mortgage funds, interest , and other finance charges at the time your home is sold, or you are no longer living in it.
Generally, reverse mortgages are available for borrowers at least sixty-two years old, have a small or zero balance in a mortgage and maintain the home as your principal living place.
Reverse mortgages can be advantageous for retired homeowners or those who are no longer bringing home a paycheck and must supplement their fixed income. Social Security and Medicare benefits aren't affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. Your lending institution isn't able to take away your property if you outlive your loan nor will you be required to sell your residence to pay off your loan even when the loan balance is determined to exceed current property value. Call us at 248-644-1200 if you want to explore the advantages of reverse mortgages.
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