Reverse mortgages (also called "home equity conversion loans") enable older homeowners to use their home equity without selling their home. The lending institution gives you money based on the equity you've built-up in your home; you receive a one-time amount, a monthly payment or a line of credit. Repayment isn't necessary until the time the homeowner puts his home up for sale, moves (such as into a retirement community) or dies. You or representative of your estate is obligated to repay the reverse mortgage funds, interest , and other finance charges after your home is sold, or you can no longer call it your primary residence.
Typically, reverse mortgages require you be at least 62 years of age, have a small or zero balance owed against the home and maintain the house as your main living place.
Homeowners who live on a fixed income and need additional money find reverse mortgages ideal for their circumstance. Rates of interest can be fixed or adjustable and the funds are nontaxable and do not interfere with Social Security or Medicare benefits. The home is never at risk of being taken away from you by the lending institution or sold against your will if you live past your loan term - even if the current property value dips below the loan balance. Reverse Mortgage can also be utilized for purchase transactions as well!Contact Peter Maurer at 414-852-7317 or email Peter at pmaurer@presus.com if you'd like to explore the advantages of reverse mortgages.