Reverse mortgages (also called "home equity conversion loans") enable older homeowners to use their built-up equity without selling their home. Deciding how you prefer to be paid: by a monthly payment amount, a line of credit, or a one-time payment, you can take out a loan based on your home equity. Paying back your loan isn't necessary until after the borrower puts his home up for sale, moves (such as to a retirement community) or passes away. After your home has been sold or is no longer used as your main residence, you (or your estate) have to repay the lending institution for the funds you got from the reverse mortgage as well as interest and other fees.
The conditions of a reverse mortgage loan generally are being 62 or older, maintaining the home as your primary residence, and holding a low balance on your mortgage or having paid it off.
Reverse mortgages can be ideal for retired homeowners or those who are no longer bringing home a paycheck and need to add to their income. Rates of interest can be fixed or adjustable and the funds are nontaxable and do not interfere with Social Security or Medicare benefits. Your home can never be at risk of being taken away from you by the lender or put up for sale against your will if you live past your loan term - even if the current property value creeps under the balance of the loan. Contact us at (703) 551-4107 to look into your reverse mortgage options.