Reverse mortgages (also called "home equity conversion loans") enable older homeowners to benefit from their home equity without having to sell their home. Deciding how you would prefer to to receive your funds: by a monthly payment, a line of credit, or a one-time payment, you may take out a loan amount determined by your home equity. Repayment is not required until after the homeowner puts his home up for sale, moves (such as into a retirement community) or passes away. After your house has been sold or you no longer use it as your main residence, you (or your estate) are obligated to pay back the lending institution for the cash you got from your reverse mortgage in addition to interest and other fees.
The conditions of a reverse mortgage loan typically are being sixty-two or older, using the property as your main living place, and having a low remaining mortgage balance or owning your home outright.
Reverse mortgages are appropriate for homeowners who are retired or no longer working but need to add to their income. Social Security and Medicare benefits aren't affected; and the money is nontaxable. Reverse Mortgages can have adjustable or fixed rates. Your home is never at risk of being taken away from you by the lending institution or sold without your consent if you outlive the loan term - even if the current property value dips under the balance of the loan. Call us at 703-288-0777 if you'd like to explore the benefits of reverse mortgages.
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