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. The lender pays you money determined by your home equity amount; you receive a one-time amount, a payment each month or a line of credit. Paying back your loan isn't necessary until when the borrower puts his home up for sale, moves (such as to a care facility) or passes away. After you sell your home or is no longer used as your primary residence, you (or your estate) have to pay back the lender for the money you obtained from your reverse mortgage plus interest and other finance charges.
Most reverse mortgages are appropriate for homeowners who are at least 62 years of age, have a low or zero balance owed against your home and use the home as your main residence.
Reverse mortgages are appropriate for retired homeowners or those who are no longer working but need to supplement their limited income. Rates of interest can be fixed or adjustable and the funds are nontaxable and don't interfere with Medicare or Social Security benefits. The lender will not take the property away if you live past the loan term nor can you be obligated to sell your home to repay the loan amount even if the loan balance is determined to exceed property value. Contact us at (816) 525-8000 & (81 if you want to explore the advantages of reverse mortgages.
Enter your email address in the form below for instant access to Jeremy Kramer's free newsletter.