Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to use their equity without the necessity of selling their home. Deciding how you would like to be paid: by a monthly payment, a line of credit, or a lump sum, you may take out a loan amount determined by your equity. The loan doesn't have to be paid back until the borrower sells his residence, moves away, or passes away. You or representative of your estate is obligated to repay the reverse mortgage loan, interest accrued, and other finance fees at the time your home is sold, or you are no longer living in it.
Generally, reverse mortgages are appropriate for homeowners at least sixty-two years old, have a small or zero balance in a mortgage and use the property as your principal residence.
Homeowners who live on a limited income and find themselves needing additional funds find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits can not be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed interest rates. Your lender will not take away your house if you live past the loan term nor can you be made to sell your residence to repay the loan amount even when the loan balance is determined to exceed current property value. Contact us at 480-390-4995 if you'd like to explore the advantages of reverse mortgages.
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