Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to tap into built-up home equity without selling their home. The lender gives you funds determined by your home equity amount; you get a one-time amount, a monthly payment or a line of credit. Paying back your loan isn't required until the time the borrower sells the home, moves (such as into a retirement community) or passes away. You or representative of your estate is required to repay the reverse mortgage loan, interest accrued, and finance charges when your property is sold, or you can no longer use it as your primary residence.
The requirements of a reverse mortgage normally are being 62 or older, maintaining your property as your primary residence, and having a small balance on your mortgage or having paid it off.
Reverse mortgages can be great for retired homeowners or those who are no longer bringing home a paycheck and must supplement their fixed income. Rates of interest can be fixed or adjustable while the money is nontaxable and doesn't interfere with Medicare or Social Security benefits. The residence will never be at risk of being taken away by the lender or sold against your will if you live past the loan term - even if the current property value goes under the loan balance. Contact us at (303) 993-6358 to discuss your reverse mortgage options.
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