In 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. Deciding how you'd prefer to be paid: by a monthly payment amount, a line of credit, or a one-time payment, you can receive a loan based on your equity. The borrowed money does not have to be repaid until the homeowner sells his residence, moves out, or passes away. At the time you sell your home or is no longer used as your primary residence, you (or your estate) are required to pay back the lending institution for the funds you received from your reverse mortgage as well as interest and other finance charges.
The conditions of a reverse mortgage often are being sixty-two or older, maintaining your house as your primary residence, and having a small balance on your mortgage or having paid it off.
Many homeowners who live on a fixed income and need additional money find reverse mortgages ideal for their situation. Social Security and Medicare benefits can't be affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed rates. The lending institution isn't able to take away your home if you live past the loan term nor will you be forced to sell your home to repay the loan even when the loan balance grows to exceed current property value. Contact us at 718-441-7000 if you want to explore the advantages of reverse mortgages.
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