Reverse mortgages (also called "home equity conversion loans") give older homeowners the ability to benefit from their built-up equity without selling their home. The lending institution gives you money based on your home equity amount; you get a lump sum, a monthly payment or a line of credit. Repayment isn't necessary until the homeowner sells the property, moves (such as to a retirement community) or dies. When 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 cash you received from your reverse mortgage plus interest and other fees.
Typically, reverse mortgages require youto be at least 62 years old, have a low or zero balance owed against your home and use the house as your principal living place.
Many homeowners who live on a fixed income and need additional funds find reverse mortgages ideal for their situation. Rates of interest can be fixed or adjustable and the money is nontaxable and does not interfere with Medicare or Social Security benefits. Your home can never be in danger of being taken away from you by the lending institution or put up for sale against your will if you outlive the loan term - even if the current property value creeps below the loan balance. Contact us at (303) 931-7879 if you want to explore the benefits of reverse mortgages.