With a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without having to sell their homes. The lender pays out money based on your home equity amount; you receive a lump sum, a monthly payment or a line of credit. Repayment isn't required until when the homeowner puts his home up for sale, moves (such as to a retirement community) or passes away. When you sell your property or you no longer use it as your main residence, you (or your estate) are obligated to repay the lending institution for the money you got from the reverse mortgage plus interest among other finance charges.
Most reverse mortgages require youto be at least sixty-two years old, have a small or zero balance owed against the home and use the house as your main living place.
Reverse mortgages can be advantageous for retired homeowners or those who are no longer working but have a need to add to their limited income. Social Security and Medicare benefits are not affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed rates. The house is never in danger of being taken away from you by the lender or put up for sale without your consent if you outlive the loan term - even if the current property value goes under the loan balance. Call us at 248-644-1200 to look into your reverse mortgage options.
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