Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to tap into home equity without selling their home. The lender pays out money 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 his home, moves away, or dies. At the time you sell your property or is no longer used as your main residence, you (or your estate) are required to repay the lending institution for the money you received from the reverse mortgage in addition to interest and other fees.
Typically, reverse mortgages require youto be at least 62 years of age, have a low or zero balance owed against the home and use the home as your principal residence.
Reverse mortgages are ideal for retired homeowners or those who are no longer working but must supplement their limited income. Rates of interest can be fixed or adjustable while the money is nontaxable and does not interfere with Medicare or Social Security benefits. Your house is never in danger of being taken away from you by the lender or sold without your consent if you live past your loan term - even if the property value dips below the loan balance. Contact us at (303) 931-7879 to explore your reverse mortgage options.