Is a Reverse Mortgage for You?
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Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to use their built-up home equity without having to sell their home. The lender gives you funds determined by your home equity amount; you get a one-time amount, a payment each month or a line of credit. The borrowed money does not have to be paid back until the homeowner sells his residence, moves away, or passes away. After you sell your home or you no longer use it as your main residence, you (or your estate) must repay the lending institution for the funds you received from the reverse mortgage plus interest and other finance charges.
Who is Able to Participate?
Usually, reverse mortgages are appropriate for borrowers at least 62 years of age, have a small or zero balance owed against the home and use the home as your main living place.
Reverse mortgages can be great for retired homeowners or those who are no longer working and must supplement their income. Rates of interest may be fixed or adjustable while the funds are nontaxable and don't affect Medicare or Social Security benefits. The home will never be at risk of being taken away from you by the lending institution or put up for sale without your consent if you outlive the loan term - even if the current property value creeps under the loan balance. Contact us at 401-886-4261 to discuss your reverse mortgage options.