Reverse Mortgages:the Facts
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Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to tap into equity without having to sell their home. Choosing between a monthly payment amount, a line of credit, or a one-time payment, you can take out a loan based on your equity. Paying back your loan isn't required until the time the homeowner puts his home up for sale, moves (such as to a care facility) or passes away. When your house sells or you no longer use it as your main residence, you (or your estate) must pay back the lending institution for the cash you got from the reverse mortgage plus interest and other finance charges.
Who is Eligible?
Usually, reverse mortgages require you be at least sixty-two years of age, have a low or zero balance in a mortgage and use the property as your main living place.
Homeowners who are on a limited income and find themselves needing additional funds find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits can't be affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed rates. The lender can't take the property away if you outlive your loan nor will you be required to sell your home to pay off your loan even if the loan balance is determined to exceed current property value. Call us at (972) 818-0022 to explore your reverse mortgage options.
At SMI Lending, Inc., we answer questions about reverse mortgages every day. Call us at (972) 818-0022.