Is a Reverse Mortgage for You?
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Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to benefit from their built-up home equity without the necessity of selling their home. The lending institution pays out money based on the equity you've accrued in your home; you receive a lump sum, a monthly payment or a line of credit. Repayment is not necessary until after the borrower sells the home, moves (such as to a retirement community) or passes away. When you sell your home or you no longer use it as your primary residence, you (or your estate) are required to pay back the lending institution for the funds you received from your reverse mortgage in addition to interest among other fees.
Who is Eligible?
The requirements of a reverse mortgage usually are being sixty-two or older, maintaining the home as your main living place, and having a low remaining mortgage balance or owning your home outright.
Reverse mortgages can be ideal for retired homeowners or those who are no longer bringing home a paycheck and need to supplement their fixed income. Rates of interest may be fixed or adjustable and the money is nontaxable and does not adversely affect Medicare or Social Security benefits. The lending institution cannot take away your home if you outlive your loan nor will you be forced to sell your home to pay off your loan amount even if the balance grows to exceed current property value. If you'd like to find out more about reverse mortgages, feel free to contact us at (888) 888-1172.
Sierra Pacific Mortgage can walk you through the pitfalls of getting a reverse mortgage. Give us a call: (888) 888-1172.