Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to use their equity without having to sell their home. Deciding how you'd prefer to to receive your money: by a monthly amount, a line of credit, or a lump sum, you can receive a loan based on your equity. The borrowed money does not have to be repaid until the borrower sells his residence, moves out, or passes away. When your home has been sold or you no longer use it as your main residence, you (or your estate) are required to repay the lender for the money you obtained from your reverse mortgage plus interest and other finance charges.
The requirements of a reverse mortgage often include being sixty-two or older, using the property as your main living place, and having a small balance on your mortgage or owning your home outright.
Reverse mortgages can be advantageous for retired homeowners or those who are no longer working and must add to their income. Rates of interest can be fixed or adjustable while the funds are nontaxable and do not affect Medicare or Social Security benefits. The lender cannot take away your property if you live past the loan term nor can you be made to sell your residence to repay the loan amount even if the loan balance is determined to exceed current property value. Contact us at 703.255-5810 to discuss your reverse mortgage options.
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