Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to tap into equity without having to sell their home. The lender gives you funds determined by your home equity amount; you receive a lump sum, a payment each month or a line of credit. The borrowed money doesn't have to be repaid until the borrower sells the residence, moves away, or passes away. When you sell your property or is no longer used as your main residence, you (or your estate) have to repay the lending institution for the funds you obtained from your reverse mortgage plus interest and other fees.
Generally, reverse mortgages are available for homeowners who are at least sixty-two years old, have a low or zero balance owed against your home and maintain the property as your principal living place.
Reverse mortgages are ideal for homeowners who are retired or no longer working and need to add to their limited income. Social Security and Medicare benefits aren't affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed interest rates. Your lender can't take away your house if you live past the loan term nor will you be forced to sell your home to pay off the loan amount even if the balance is determined to exceed property value. Call us at (405) 822-1957 if you want to explore the benefits of reverse mortgages.
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