Reverse Mortgages:the Facts

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In a reverse mortgage loan (sometimes called a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without having to sell their homes. Choosing between a monthly amount, a line of credit, or a lump sum, you may take out a loan based on your equity. The loan does not have to be paid back until the borrower sells his residence, moves out, or passes away. You or representative of your estate is obligated to pay back the reverse mortgage amount, interest accrued, and finance charges when your house is sold, or you no longer live in it.

Who is Eligible?

The conditions of a reverse mortgage loan normally include being 62 or older, using the house as your main living place, and having a low balance on your mortgage or owning your home outright.

Homeowners who live on a limited income and have a need for additional funds find reverse mortgages advantageous for their situation. Interest rates may be fixed or adjustable while the funds are nontaxable and don't affect Social Security or Medicare benefits. Your lending institution isn't able to take the property away if you outlive your loan nor may you be forced to sell your home to pay off the loan amount even if the balance is determined to exceed property value. Call us at 504-866-5626 if you'd like to explore the advantages of reverse mortgages.

Coastal Mortgage Corp. can answer questions about reverse mortgages and many others. Give us a call at 504-866-5626.

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