With a reverse mortgage (sometimes called a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. Deciding how you would like to be paid: by a monthly payment, a line of credit, or a lump sum, you may receive a loan amount determined by your home equity. The loan does not have to be paid back until the borrower sells his residence, moves out, or dies. After your house has been sold or you no longer use it as your main residence, you (or your estate) are required to repay the lending institution for the money you obtained from your reverse mortgage in addition to interest among other finance charges.
Most reverse mortgages require youto be at least sixty-two years of age, have a small or zero balance in a mortgage and maintain the house as your principal living place.
Homeowners who are on a limited income and need additional funds find reverse mortgages ideal for their circumstance. Rates of interest may be fixed or adjustable and the funds are nontaxable and do not interfere with Social Security or Medicare benefits. The house is never at risk of being taken away by the lender or sold against your will if you outlive your loan term - even if the current property value creeps below the balance of the loan. If you'd like to find out more about reverse mortgages, please contact us at 504-866-5626.
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