Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to use their built-up equity without having to sell their home. Deciding how you'd prefer to to receive your funds: by a monthly amount, a line of credit, or a lump sum, you may take out a loan amount determined by your home equity. Repayment is not required until the time the homeowner sells the home, moves (such as into a care facility) or passes away. When your house sells or you no longer use it as your primary residence, you (or your estate) have to pay back the lending institution for the money you got from the reverse mortgage plus interest among other finance charges.
Typically, reverse mortgages require you be at least 62 years old, have a low or zero balance owed against the home and maintain the home as your principal living place.
Reverse mortgages are great for retired homeowners or those who are no longer bringing home a paycheck but have a need to supplement their fixed income. Rates of interest may be fixed or adjustable while the funds are nontaxable and do not affect Medicare or Social Security benefits. The lender isn't able to take away your property if you outlive your loan nor can you be forced to sell your home to repay the loan even if the balance grows to exceed property value. Contact us at (808) 935-0678 if you'd like to explore the advantages of reverse mortgages.
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