Is a Reverse Mortgage for You?
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In a reverse mortgage (also called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without having to sell their homes. The lending institution gives you funds based on the equity you've built-up in your home; you receive a one-time amount, a payment every month or a line of credit. Paying back your loan is not required until the borrower sells the home, moves (such as to a care facility) or passes away. You or your estate representative is required to pay back the reverse mortgage loan, interest , and finance charges when your home is sold, or you can no longer use it as your primary residence.
Who is Eligible?
Usually, reverse mortgages require youto be at least 62 years of age, have a small or zero balance owed against the home and use the house as your main living place.
Reverse mortgages can be helpful for homeowners who are retired or no longer working and must supplement their income. Social Security and Medicare benefits can not be affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed interest rates. The lender will not take away your house if you outlive your loan nor may you be required to sell your residence to pay off your loan even if the balance is determined to exceed property value. Contact us at (214) 317-4272 to discuss your reverse mortgage options.
Kota Realty & Mortgage Services, Inc can walk you through the pitfalls of getting a reverse mortgage. Give us a call: (214) 317-4272.