With a reverse mortgage loan (also referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. Choosing between a monthly amount, a line of credit, or a lump sum, you can receive a loan based on your home equity. Repayment is not required until the time the borrower sells the home, moves (such as into a retirement community) or dies. At the time you sell your property or is no longer used as your primary residence, you (or your estate) must pay back the lender for the money you got from your reverse mortgage as well as interest and other fees.
Usually, reverse mortgages require you be at least sixty-two years old, have a low or zero balance in a mortgage and use the home as your main residence.
Homeowners who live on a limited income and have a need for additional funds find reverse mortgages advantageous for their situation. Social Security and Medicare benefits can not be affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed interest rates. The home is never at risk of being taken away from you by the lending institution or put up for sale against your will if you live longer than your loan term - even if the property value creeps below the loan balance. Call us at (808) 935-0678 if you'd like to explore the benefits of reverse mortgages.
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