In a reverse mortgage (also referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without having to sell their homes. The lending institution gives you money determined by your home equity amount; you receive a one-time amount, a monthly payment or a line of credit. The loan does not have to be paid back until the homeowner sells the home, moves out, or dies. You or an estate representative has to pay back the reverse mortgage loan, interest , and finance fees at the time your home is sold, or you are no longer living in it.
The conditions of a reverse mortgage typically are being 62 or older, using the property as your primary residence, and holding a small balance on your mortgage or having paid it off.
Many homeowners who are on a limited income and find themselves needing additional money find reverse mortgages advantageous for their situation. Social Security and Medicare benefits can't be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed interest rates. Your lending institution can't take the property away if you outlive your loan nor will you be made to sell your residence to repay the loan amount even if the loan balance is determined to exceed property value. Call us at 208-941-3337 to discuss your reverse mortgage options.