Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to benefit from their equity without selling their home. Choosing between a monthly payment, a line of credit, or a lump sum, you may receive a loan amount determined by your home equity. Paying back your loan is not necessary until when the homeowner sells the property, moves (such as into a retirement community) or passes away. After you sell your property or you no longer use it as your primary residence, you (or your estate) have to pay back the lender for the funds you got from your reverse mortgage as well as interest among other finance charges.
Usually, reverse mortgages require youto be at least sixty-two years of age, have a low or zero balance in a mortgage and use the home as your main residence.
Many homeowners who are on a limited income and need additional funds find reverse mortgages helpful for their situation. Social Security and Medicare benefits can't be affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed interest rates. The lending institution isn't able to take the property away if you outlive your loan nor can you be made to sell your home to repay your loan amount even when the loan balance grows to exceed current property value. Call us at (808) 935-0678 to explore your reverse mortgage options.
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