The Facts of Reverse Mortgages
Considering a Reverse Mortgage
As an alternative to selling their homes, reverse mortgages (sometimes called "home equity conversion loans") permit older homeowners to access their built-up equity without having to sell their homes. Based on the equity in your home, you may be able to obtain a loan based on a monthly payment, a line of credit, or an upfront payment. The homeowner does not have to pay back the loan until he/she sells the residence, moves out, or passes away. After you sell your home or cease to use it as your primary residence, you (or your estate) must repay the lender the money you received from the reverse mortgage, as well as interest and other fees associated with the reverse mortgage.
Are you Eligible?
The primary requirements for a reverse mortgage loan include being 62 years of age or older, occupying the residence as your primary residence, and holding a small remaining mortgage balance or owning the property outright.
In many cases, homeowners who are on a fixed income and find themselves in need of additional funds find reverse mortgages to be a suitable solution. This does not affect Social Security or Medicare benefits, and the money is not taxable. The rate for reverse mortgages can be variable or fixed. Even if the current property value dips below the balance of the loan as long as you live in the home, maintain it, and pay the property taxes and insurance your house is never at risk of being repossessed or sold without your consent if you live beyond the loan term. We can be contacted at 603-893-6616 if you have any questions regarding reverse mortgages.
The Omni Mortgage Company, Inc. can help you navigate the pitfalls of getting a reverse mortgage. Please call 603-893-6616 for more information.
Questions about reverse mortgages? Contact Omni today at (603) 893-6616!