Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to benefit from their built-up equity without selling their home. Choosing between a monthly payment amount, a line of credit, or a lump sum, you can get a loan based on your equity. Repayment is not required until when the borrower sells the home, moves (such as to a retirement community) or dies. When your house has been sold or you no longer use it as your main residence, you (or your estate) must pay back the lender for the funds you received from the reverse mortgage in addition to interest among other fees.
Usually, reverse mortgages require you be at least sixty-two years of age, have a small or zero balance owed against your home and maintain the house as your principal living place.
Reverse mortgages can be ideal for homeowners who are retired or no longer bringing home a paycheck and have a need to supplement their limited income. Social Security and Medicare benefits will not be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. The residence is never in danger of being taken away from you 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 under the loan balance. Contact us at 703-288-0777 to explore your reverse mortgage options.
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