Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to tap into home equity without the necessity of selling their home. The lending institution gives you funds determined by the equity you've built-up in your home; you receive a lump sum, a monthly payment or a line of credit. The loan doesn't have to be paid back until the homeowner sells his residence, moves away, or dies. At the time you sell your property or is no longer used as your main residence, you (or your estate) have to repay the lending institution for the money you got from your reverse mortgage plus interest and other fees.
Usually, reverse mortgages are available for borrowers at least sixty-two years of age, have a low or zero balance owed against the home and use the property as your principal residence.
Many homeowners who live on a fixed income and have a need for additional funds find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits can not be affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed interest rates. Your home is never at risk of being taken away by the lending institution or sold without your consent if you live past the loan term - even if the property value creeps below the loan balance. Call us at 970-625-8686 to look into your reverse mortgage options.
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