With a reverse mortgage loan (also called a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without selling their homes. The lending institution gives you funds based on your home equity amount; you receive a one-time amount, a monthly payment or a line of credit. The loan does not have to be paid back until the borrower sells the residence, moves away, or dies. When you sell your property or you no longer use it as your primary residence, you (or your estate) must pay back the lending institution for the funds you got from your reverse mortgage plus interest and other fees.
Generally, reverse mortgages require youto be at least sixty-two years of age, have a small or zero balance in a mortgage and use the home as your main living place.
Many homeowners who are on a limited income and find themselves needing additional money find reverse mortgages helpful for their circumstance. Social Security and Medicare benefits won't be affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed rates. The residence can never be at risk of being taken away by the lender or put up for sale against your will if you live past your loan term - even if the property value creeps under the loan balance. Call us at (703) 551-4107 to explore your reverse mortgage options.