Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to tap into home equity without selling their home. Deciding how you prefer to be paid: by a monthly amount, a line of credit, or a lump sum, you may get a loan based on your equity. Paying back your loan isn't necessary until when the borrower puts his home up for sale, moves (such as to a retirement community) or dies. When your home sells or you no longer use it as your main residence, you (or your estate) must pay back the lender for the cash you received from your reverse mortgage in addition to interest among other finance charges.
The requirements of a reverse mortgage normally are being sixty-two or older, maintaining your house as your main residence, and having a small balance on your mortgage or having paid it off.
Reverse mortgages can be helpful for homeowners who are retired or no longer bringing home a paycheck but need to add to their income. Interest rates may be fixed or adjustable while the money is nontaxable and doesn't affect Medicare or Social Security benefits. Your lender can't take away your property if you live past the loan term nor will you be required to sell your home to repay the loan amount even if the loan balance is determined to exceed current property value. If you'd like to learn more about reverse mortgages, feel free to call us at (773) 774-9040 Ext 121.
Please provide some general information that is needed in order to provide you with a Reverse Mortgage Quote