Reverse mortgages (sometimes called "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 amount determined by your equity. The borrowed money doesn't have to be paid back until the homeowner sells the home, moves away, or dies. At the time your house has been sold or is no longer used as your primary residence, you (or your estate) have to pay back the lending institution for the money you received from your reverse mortgage plus interest and other finance charges.
Most reverse mortgages require you be at least sixty-two years of age, have a low or zero balance owed against the home and maintain the property as your main living place.
Many homeowners who are on a fixed income and find themselves needing additional funds find reverse mortgages helpful for their circumstance. Interest rates may be fixed or adjustable while the money is nontaxable and does not affect Social Security or Medicare benefits. Your residence can never be in danger of being taken away from you by the lending institution or sold without your consent if you live past your loan term - even if the current property value goes below the balance of the loan. Contact us at (203) 526-9345 if you would like to explore the advantages of reverse mortgages.
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