Reverse Mortgages:the Facts
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In a reverse mortgage loan (sometimes called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. The lending institution pays out funds based on the equity you've built-up in your home; you get a lump sum, a monthly payment or a line of credit. The borrowed money does not have to be paid back until the homeowner sells the home, moves out, or dies. You or your estate representative has to repay the reverse mortgage amount, interest accrued, and finance charges when your property is sold, or you can no longer use it as your primary residence.
Are you Eligible?
The requirements of a reverse mortgage loan generally are being sixty-two or older, maintaining the property as your main residence, and having a low balance on your mortgage or owning your home outright.
Reverse mortgages can be great for retired homeowners or those who are no longer bringing home a paycheck but have a need to supplement their limited income. Interest rates can be fixed or adjustable and the money is nontaxable and does not adversely affect Medicare or Social Security benefits. Your home is never at risk of being taken away from you by the lending institution or sold without your consent if you live past the loan term - even if the current property value goes below the loan balance. Call us at (816) 525-8000 if you would like to explore the benefits of reverse mortgages.
Executive Lending Group, LLC can walk you through the pitfalls of getting a reverse mortgage. Give us a call: (816) 525-8000.
- This material is not from HUD or FHA and has not been approved by HUD or a government agency. Also add the borrower's responsibility to pay taxes, insurance and maintain the home as well as comply with all other loan terms or risk foreclosure.
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