Reverse Mortgages:the Facts
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Reverse mortgages (also called "home equity conversion loans") give older homeowners the ability to use their built-up home equity without selling their home. The lending institution pays you money determined by your home equity amount; you get a one-time amount, a payment every month or a line of credit. Repayment is not required until when the borrower sells the home, moves (such as into a care facility) or passes away. You or your estate representative must pay back the reverse mortgage funds, interest , and finance fees at the time your home is sold, or you can no longer use it as your primary residence.
Are you Eligible?
The requirements of a reverse mortgage loan generally include being 62 or older, using the house as your main living place, and having a low balance on your mortgage or having paid it off.
Reverse mortgages can be appropriate for retired homeowners or those who are no longer working and must supplement their limited income. Rates of interest can be fixed or adjustable while the money is nontaxable and doesn't adversely affect Social Security or Medicare benefits. Your lending institution can't take away your residence if you outlive your loan nor can you be forced to sell your home to pay off the loan amount even when the balance is determined to exceed property value. Call us at 505-881-2000 if you would like to explore the benefits of reverse mortgages.