Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to use their built-up equity without selling their home. The lending institution pays out money determined by the equity you've accrued in your home; you receive a one-time amount, a monthly payment or a line of credit. The borrowed money does not have to be paid back until the borrower sells his home, moves out, or passes away.
Most reverse mortgages require you to be at least sixty-two years old, have a fair amount of equity in your home, and maintain the property as your principal living place.
Homeowners who are on a limited income and find themselves needing additional funds find reverse mortgages advantageous for their circumstance. Interest rates may be fixed or adjustable and the funds are nontaxable and don't interfere with Medicare or Social Security benefits. The house is never at risk of being taken away by the lender or put up for sale against your will if you outlive the loan term - even if the property value dips below the balance of the loan. Contact us at 218-237-5128 to explore your reverse mortgage options.
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