Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to benefit from their equity without selling their home. Choosing between a monthly amount, a line of credit, or a lump sum, you may take out a loan amount determined by your equity. The borrowed money does not have to be paid back until the homeowner sells the home, moves out, or dies. At the time you sell your property or is no longer used as your main residence, you (or your estate) are required to pay back the lending institution for the money you obtained from the reverse mortgage in addition to interest and other finance charges.
The conditions of a reverse mortgage often are being sixty-two or older, using the property as your primary residence, and holding a small remaining mortgage balance or owning your home outright.
Homeowners who are on a limited income and need additional money find reverse mortgages helpful for their circumstance. Social Security and Medicare benefits aren't affected; and the money is nontaxable. Reverse Mortgages can have adjustable or fixed rates. The residence will never be in danger of being taken away by the lending institution or put up for sale against your will if you live past your loan term - even if the property value goes below the balance of the loan. Call us at 248-644-1200 to discuss your reverse mortgage options.
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