New federal loan limits enable older homeowners to tap into a larger portion of their home-equity with a reverse mortgage. The elderly need not give up or sell the title and the best part is that the loan need not be repaid till the owner moves, sells or dies. When the loan is repaid, any remaining equity is distributed to the borrower if he or she is alive or to the late borrower's estate. In addition, the repayment amount never can exceed the value of the home.
Elderly borrowers can resort to any kind of home loan and take up fixed monthly payments, lump-sum payments, line of credit or a combination of these. Another advantage is that as the money received is a loan it cannot be called taxable income nor will it affect your Social Security or Medicare benefits. The only apparent catch in this is that the amount of money you borrow depends on your age, current interest rate and other loan fees. Also a factor is the newly appraised value of your house and mortgage limits set in your area by Federal Housing Administration
Cash there for elderly homeowners: gives more details.
Comments