Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to use their built-up equity without having to sell their home. Deciding how you'd like to be paid: by a monthly amount, a line of credit, or a one-time payment, you can take out a loan amount determined by your home equity. Repayment isn't necessary until the time the homeowner sells the property, moves (such as into a care facility) or passes away. You or your estate representative is obligated to repay the reverse mortgage amount, interest accrued, and other finance charges after your home is sold, or you are no longer living in it.
Generally, reverse mortgages require youto be at least 62 years old, have a small or zero balance owed against the home and maintain the property as your principal residence.
Many homeowners who live on a fixed income and need additional money find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits can't be affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed rates. The residence will never be in danger of being taken away by the lending institution or sold without your consent if you outlive the loan term - even if the current property value goes below the loan balance. Call us at 504-866-5626 to look into your reverse mortgage options.
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