Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to tap into built-up equity without selling their home. The lending institution pays you money based on the equity you've built-up in your home; you get a lump sum, a monthly payment or a line of credit. The borrowed money does not have to be paid back until the homeowner sells the residence, moves away, or dies. After you sell your property or is no longer used as your main residence, you (or your estate) have to pay back the lender for the cash you obtained from your reverse mortgage plus interest among other finance charges.
The requirements of a reverse mortgage generally are being sixty-two or older, using the home as your primary living place, and holding a small balance on your mortgage or owning your home outright.
Many homeowners who live on a limited income and need additional money find reverse mortgages helpful for their situation. Rates of interest can be fixed or adjustable while the money is nontaxable and doesn't interfere with Social Security or Medicare benefits. Your lending institution cannot take the property away if you outlive your loan nor may you be obligated to sell your residence to repay the loan amount even if the loan balance is determined to exceed property value. Call us at (303) 931-7879 to explore your reverse mortgage options.