Is a Reverse Mortgage for You?
Searching for mortgage advice? We will be glad to help! Give us a call today at 319-283-4000. Ready to begin? Apply Here
Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to use their built-up equity without selling their home. Deciding how you would prefer to to receive your money: by a monthly payment amount, a line of credit, or a one-time payment, you may get a loan based on your equity. The loan does not have to be repaid until the homeowner sells the residence, moves out, or dies. When your home has been sold or you no longer use it as your primary residence, you (or your estate) must pay back the lender for the cash you obtained from your reverse mortgage as well as interest and other finance charges.
Who can Participate?
The requirements of a reverse mortgage loan often include being 62 or older, using the home as your main residence, and having a small balance on your mortgage or owning your home outright.
Many homeowners who live on a fixed income and need additional funds find reverse mortgages advantageous for their situation. Interest rates may be fixed or adjustable while the money is nontaxable and does not adversely affect Medicare or Social Security benefits. Your home is never in danger of being taken away by the lender or sold against your will if you live past the loan term - even if the current property value dips below the balance of the loan. Contact us at 319-283-4000 to look into your reverse mortgage options.
Community Bank of Oelwein can answer questions about reverse mortgages and many others. Call us: 319-283-4000.