Reverse Mortgages:the Facts

	Are you looking for a new mortgage? We will be glad to assist you! Give us a call today at (301)-938-1655. Ready to get started? Apply Now.

Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to use their home equity without having to sell their home. Choosing between a monthly amount, a line of credit, or a lump sum, you may take out a loan amount determined by your home equity. The borrowed money does not have to be paid back until the borrower sells the home, moves out, or passes away. After you sell your property or you no longer use it as your primary residence, you (or your estate) have to pay back the lending institution for the funds you got from your reverse mortgage plus interest among other finance charges.

Are you Eligible?

The conditions of a reverse mortgage usually include being 62 or older, using the house as your primary living place, and having a small remaining mortgage balance or having paid it off.

Homeowners who are on a fixed income and find themselves needing additional money find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits are not affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed rates. The lending institution cannot take the property away if you live past the loan term nor may you be made to sell your residence to repay the loan amount even if the loan balance is determined to exceed property value. If you would like to learn more about reverse mortgages, feel free to contact us at (301)-938-1655.

Southern Trust Mortgage can answer questions about reverse mortgages and many others. Give us a call at (301)-938-1655.