Reverse mortgages (also called "home equity conversion loans") enable older homeowners to benefit from their home equity without the necessity of selling their home. The lender gives you money based on the equity you've built-up in your home; you receive a lump sum, a monthly payment or a line of credit. The loan doesn't have to be paid back until the homeowner sells the residence, moves away, or dies. After your house sells or is no longer used as your primary residence, you (or your estate) are obligated to repay the lender for the money you obtained from the reverse mortgage plus interest and other fees.
The requirements of a reverse mortgage loan typically are being 62 or older, maintaining your home as your primary residence, and holding a small remaining mortgage balance or owning your home outright.
Many homeowners who are on a fixed income and need additional money find reverse mortgages advantageous for their situation. Interest rates may be fixed or adjustable while the funds are nontaxable and do not affect Social Security or Medicare benefits. Your residence is never at risk of being taken away by the lending institution or put up for sale against your will if you live past the loan term - even if the current property value dips below the balance of the loan. Call us at 504-866-5626 to look into your reverse mortgage options.
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