Reverse Mortgages:the Facts
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Reverse mortgages (also referred to as "home equity conversion loans") enable older homeowners to use their built-up equity without the necessity of selling their home. The lending institution pays out money determined by your home equity amount; you get a one-time amount, a payment each month or a line of credit. Repayment isn't necessary until the time the homeowner puts his home up for sale, moves (such as to a retirement community) or dies. When you sell your home or you no longer use it as your main residence, you (or your estate) must pay back the lender for the money you received from the reverse mortgage in addition to interest and other fees.
Who can Participate?
The conditions of a reverse mortgage usually are being 62 or older, using the home as your primary residence, and having a low remaining mortgage balance or owning your home outright.
Many homeowners who live on a limited income and find themselves needing additional funds find reverse mortgages helpful for their situation. Social Security and Medicare benefits can't be affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed interest rates. The lending institution cannot take away your property if you live past the loan term nor can you be made to sell your residence to pay off the loan amount even if the loan balance is determined to exceed current property value. If you'd like to learn more about reverse mortgages, please call us at 9183711065.
American Bank of Oklahoma can walk you through the pitfalls of getting a reverse mortgage. Call us: 9183711065.