Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to benefit from their built-up home equity without selling their home. The lending institution gives you money determined by your home equity amount; you receive a lump sum, a payment every month or a line of credit. The borrowed money does not have to be paid back until the homeowner sells the residence, moves away, or passes away. You or representative of your estate is obligated to repay the reverse mortgage loan, interest accrued, and finance fees when your home is sold, or you are no longer living in it.
Generally, reverse mortgages require youto be at least 62 years of age, have a low or zero balance owed against your home and use the home as your main living place.
Many homeowners who live on a fixed income and need additional money find reverse mortgages helpful for their situation. Social Security and Medicare benefits will not be affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed interest rates. The home can never be at risk of being taken away by the lender or sold without your consent if you outlive your loan term - even if the current property value creeps under the loan balance. Contact us at (703) 551-4107 if you want to explore the advantages of reverse mortgages.