Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to use their built-up home equity without having to sell their home. The lending institution gives you funds determined by the equity you've accrued in your home; you get a one-time amount, a payment every month or a line of credit. Repayment isn't necessary until the borrower puts his home up for sale, moves (such as to a care facility) or passes away. At the time you sell your property or you no longer use it as your main residence, you (or your estate) have to pay back the lending institution for the money you obtained from your reverse mortgage in addition to interest among other finance charges.
Usually, reverse mortgages require youto be at least sixty-two years old, have a small or zero balance in a mortgage and maintain the house as your main residence.
Homeowners who are on a fixed income and find themselves needing additional money find reverse mortgages ideal for their situation. Social Security and Medicare benefits can't be affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. Your residence is never in danger of being taken away from you by the lender or put up for sale without your consent if you outlive the loan term - even if the property value creeps under the balance of the loan. If you would like to find out more about reverse mortgages, feel free to contact us at 504-866-5626.
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