With a reverse mortgage loan (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without selling their homes. The lender pays out funds determined by your home equity amount; you get a lump sum, a payment every month or a line of credit. Repayment is not necessary until the time the borrower sells the property, moves (such as into a care facility) or dies. When you sell your property or you no longer use it as your main residence, you (or your estate) have to pay back the lender for the money you got from the reverse mortgage as well as interest among other finance charges.
Most reverse mortgages are offered to homeowners at least 62 years old, have a small or zero balance in a mortgage and maintain the home as your main living place.
Homeowners who are on a fixed income and find themselves needing additional money find reverse mortgages advantageous for their situation. Interest rates can be fixed or adjustable and the funds are nontaxable and don't interfere with Medicare or Social Security benefits. Your home is never at risk of being taken away by the lending institution or sold without your consent if you outlive your loan term - even if the current property value dips below the balance of the loan. If you'd like to learn more about reverse mortgages, feel free to contact 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