Reverse mortgages (also called "home equity conversion loans") give older homeowners the ability to tap into built-up home equity without selling their home. The lender gives you money based on your home equity amount; you receive a one-time amount, a payment every month or a line of credit. The loan doesn't have to be paid back until the homeowner sells his residence, moves away, or passes away. When you sell your property or is no longer used as your primary residence, you (or your estate) have to pay back the lender for the cash you obtained from your reverse mortgage as well as interest and other fees.
The conditions of a reverse mortgage loan normally include being 62 or older, maintaining your home as your primary living place, and having a small remaining mortgage balance or having paid it off.
Many homeowners who live on a limited income and find themselves needing additional money find reverse mortgages advantageous for their circumstance. Interest rates can be fixed or adjustable while the money is nontaxable and doesn't adversely affect Social Security or Medicare benefits. Your home can never be at risk of being taken away from you by the lender or sold against your will if you outlive the loan term - even if the property value dips under the balance of the loan. Contact us at (773) 774-9040 Ext 121 to discuss your reverse mortgage options.
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