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In a reverse mortgage (also called a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. Deciding how you would prefer to to receive your money: by a monthly amount, a line of credit, or a lump sum, you can take out a loan amount determined by your home equity. Repayment isn't required until when the borrower puts his home up for sale, moves (such as to a retirement community) or passes away. You or your estate representative must repay the reverse mortgage loan, interest accrued, and other finance fees when your property is sold, or you are no longer living in it.
Who is Eligible?
The conditions of a reverse mortgage loan usually include being sixty-two or older, maintaining your house as your main living place, and holding a low balance on your mortgage or having paid it off.
Reverse mortgages are great for retired homeowners or those who are no longer bringing home a paycheck and need to supplement their income. Rates of interest may be fixed or adjustable and the money is nontaxable and does not interfere with Medicare or Social Security benefits. The lender can't take away your house if you live past the loan term nor may you be required to sell your residence to pay off the loan amount even when the balance grows to exceed current property value. Call us at 303-997-7117 if you would like to explore the benefits of reverse mortgages.