Reverse mortgages (also called "home equity conversion loans") enable older homeowners to tap into home equity without having to sell their home. The lender gives you funds based on your home equity amount; you get a lump sum, a payment each month or a line of credit. Paying back your loan isn't required until when the borrower sells the property, moves (such as to a care facility) or dies. At the time you sell your property or you no longer use it as your primary residence, you (or your estate) must repay the lender for the cash you got from the reverse mortgage as well as interest and other finance charges.
The conditions of a reverse mortgage usually are being 62 or older, maintaining your house as your primary living place, and having a small balance on your mortgage or having paid it off.
Many homeowners who live on a limited income and have a need for additional money find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits are not affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed rates. The home is never at risk of being taken away by the lending institution or put up for sale without your consent if you outlive the loan term - even if the property value creeps below the balance of the loan. Contact us at (808) 935-0678 to explore your reverse mortgage options.
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