Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to benefit from their home equity without the necessity of selling their home. The lender pays you funds based on your home equity amount; you get a lump sum, a payment every month or a line of credit. The loan doesn't have to be repaid until the borrower sells the residence, moves out, or dies. You or an estate representative has to pay back the reverse mortgage funds, interest , and other finance fees when your property is sold, or you can no longer call it your primary residence.
Generally, reverse mortgages require you be at least 62 years of age, have a low or zero balance owed against your home and use the home as your principal living place.
Homeowners who live on a limited income and need additional funds find reverse mortgages ideal for their circumstance. Social Security and Medicare benefits aren't affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. The lender isn't able to take away your property if you live past the loan term nor will you be required to sell your home to pay off the loan amount even when the balance is determined to exceed current property value. Contact us at 407-496-3555 to look into your reverse mortgage options.
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