With a reverse mortgage (also called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without having to sell their homes. The lender gives you money determined by the equity you've built-up in your home; you get a lump sum, a monthly payment or a line of credit. Paying back your loan isn't necessary until after the borrower sells the home, moves (such as into a retirement community) or dies. You or an estate representative is obligated to repay the reverse mortgage loan, interest accrued, and finance charges after your house is sold, or you are no longer living in it.
Most reverse mortgages are appropriate for borrowers at least 62 years old, have a small or zero balance in a mortgage and use the property as your principal living place.
Reverse mortgages are advantageous for homeowners who are retired or no longer working and need to add to their income. Social Security and Medicare benefits aren't affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed interest rates. The lending institution is not able to take the property away if you outlive your loan nor may you be obligated to sell your home to repay your loan even when the loan balance is determined to exceed current property value. Call us at (816) 525-8000 & (81 to explore your reverse mortgage options.
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