Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to tap into home equity without having to sell their home. Choosing between a monthly payment, a line of credit, or a lump sum, you can get a loan based on your equity. Repayment isn't necessary until the time the borrower sells the property, moves (such as to a retirement community) or passes away. When you sell your property or you no longer use it as your primary residence, you (or your estate) are obligated to repay the lender for the cash you got from your reverse mortgage plus interest and other fees.
The conditions of a reverse mortgage loan typically are being 62 or older, maintaining the home as your main living place, and holding a small balance on your mortgage or owning your home outright.
Many homeowners who live on a limited income and find themselves needing additional money find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits aren't affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed interest rates. The house will never be in danger of being taken away by the lending institution or put up for sale against your will if you live past your loan term - even if the property value goes below the balance of the loan. Contact us at 504-866-5626 if you'd like to explore the benefits of reverse mortgages.
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