In a reverse mortgage loan (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without selling their homes. Deciding how you prefer to to receive your money: by a monthly amount, a line of credit, or a one-time payment, you may get a loan amount determined by your home equity. Repayment isn't necessary until the time the homeowner sells the home, moves (such as to a care facility) or passes away. After you sell your property or you no longer use it as your main residence, you (or your estate) must repay the lender for the funds you received from your reverse mortgage as well as interest and other finance charges.
Most reverse mortgages require you be at least sixty-two years of age, have a low or zero balance in a mortgage and use the property as your main living place.
Homeowners who live on a limited income and find themselves needing additional money find reverse mortgages helpful for their circumstance. Rates of interest may be fixed or adjustable and the funds are nontaxable and do not interfere with Medicare or Social Security benefits. Your lender is not able to take the property away if you live past the loan term nor will you be made to sell your home to pay off your loan amount even if the balance grows to exceed current property value. Call us at 248-644-1200 to explore your reverse mortgage options.
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