Reverse Mortgages:the Facts
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Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to tap into built-up equity without the necessity of selling their home. Choosing between a monthly amount, a line of credit, or a one-time payment, you can receive a loan amount determined by your home equity. The borrowed money doesn't have to be repaid until the homeowner sells the residence, moves away, or passes away. After you sell your home or is no longer used as your primary residence, you (or your estate) are obligated to pay back the lender for the funds you received from your reverse mortgage as well as interest and other finance charges.
Who is Eligible?
Usually, reverse mortgages are offered to borrowers who are at least sixty-two years old, have a low or zero balance owed against the home and maintain the property as your main living place.
Reverse mortgages can be helpful for retired homeowners or those who are no longer bringing home a paycheck and need to supplement their fixed income. Social Security and Medicare benefits can not be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed rates. The lending institution will not take the property away if you outlive your loan nor will you be required to sell your residence to repay your loan amount even if the loan balance is determined to exceed current property value. Contact us at 620-662-0091 if you would like to explore the benefits of reverse mortgages.