Reverse mortgages (also called "home equity conversion loans") enable older homeowners to use their home equity without having to sell their home. The lending institution gives you money determined by your home equity amount; you receive a lump sum, a monthly payment or a line of credit. Paying back your loan isn't necessary until the time the homeowner sells the property, moves (such as to a care facility) or dies. You or representative of your estate is obligated to pay back the reverse mortgage loan, interest accrued, and finance fees when your home is sold, or you no longer live in it.
The conditions of a reverse mortgage loan usually are being 62 or older, using the home as your primary residence, and having a low balance on your mortgage or having paid it off.
Reverse mortgages can be ideal for homeowners who are retired or no longer working but have a need to add to their fixed income. Social Security and Medicare benefits won't be affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed rates. The lender can't take away your residence if you live past the loan term nor will you be obligated to sell your home to pay off your loan even when the loan balance is determined to exceed property value. Call us at 801.255.6582 to discuss your reverse mortgage options.
Do you have a question regarding a mortgage program?