Reverse Mortgages: The Facts

 

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Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to tap into home equity without the necessity of selling their home. Choosing between a monthly payment amount, a line of credit, or a lump sum, you can receive a loan amount determined by your equity. Repayment isn't required until the borrower puts his home up for sale, moves (such as into a retirement community) or passes away. At the time you sell your property or is no longer used as your main residence, you (or your estate) have to repay the lender for the cash you obtained from the reverse mortgage plus interest among other finance charges.

 

Who can Participate?

Generally, reverse mortgages require you be at least sixty-two years of age, have a low or zero balance owed against your home and maintain the home as your principal living place.

Many homeowners who live on a fixed income and need additional money find reverse mortgages helpful for their circumstance. Rates of interest may be fixed or adjustable and the funds are nontaxable and do not affect Medicare or Social Security benefits. The lender can't take away your home if you outlive your loan nor may you be forced to sell your home to repay your loan even if the loan balance grows to exceed property value. Contact us at 888-376-3762 to discuss your reverse mortgage options.


Funding Resources Mortgage Corp. can walk you through the pitfalls of getting a reverse mortgage. Give us a call: 888-376-3762.