Reverse Mortgages:the Facts
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With a reverse mortgage loan (also called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without having to sell their homes. The lending institution gives you money based on the equity you've accrued in your home; you get a lump sum, a monthly payment or a line of credit. Paying back your loan is not required until after the homeowner sells the home, moves (such as to a care facility) or dies. You or representative of your estate has to pay back the reverse mortgage funds, interest , and finance fees at the time your home is sold, or you no longer live in it.
Who is Eligible?
The requirements of a reverse mortgage typically include being 62 or older, using the home as your main residence, and having a small remaining mortgage balance or owning your home outright.
Homeowners who live on a fixed income and find themselves needing additional funds find reverse mortgages ideal for their situation. Social Security and Medicare benefits can't be affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed interest rates. The house will never be at risk of being taken away from you by the lender or sold without your consent if you live longer than your loan term - even if the current property value goes under the balance of the loan. If you would like to learn more about reverse mortgages, feel free to contact us at (803) 391-3299.
National Asset Mortgage, LLC can answer questions about reverse mortgages and many others. Give us a call at (803) 391-3299.